The Presidency has announced that, starting at the end of January, Nigeria’s local government areas will receive their allocations directly from the Federal Allocation Account Committee (FAAC). This move marks a significant milestone in achieving financial autonomy for local governments.
The Special Adviser to the President on Media and Public Communications, Sunday Dare, shared the update during an interview on Arise News. He reiterated President Bola Tinubu’s commitment to upholding the Supreme Court’s landmark July 2024 judgment, which deemed state control over local government funds unconstitutional.
The ruling, delivered by Justice Emmanuel Agbim, mandated that funds for the nation’s 774 local governments be paid directly, bypassing state governments. While the judgment was issued months ago, its implementation was delayed to establish the necessary mechanisms. Dare confirmed that these preparations are now complete, enabling direct funding to local councils by the end of January.
Highlighting the impact of this policy, Dare quoted a local government chairman: “I will now receive N2.9 billion instead of the N200 million I used to get.”
Dare also called for closer scrutiny of financial management at the state and local levels, citing cases where significant funds were allocated but little development was evident. “One state collected N499 billion last year, almost four times its prior allocation, yet the results are underwhelming,” he noted, urging greater accountability across all tiers of government.
