In a landmark move poised to reshape Nigeria's governance structure, local government areas (LGAs) will start receiving direct allocations from the Federation Account starting next month. This development follows the Supreme Court's July 11 judgment granting financial autonomy to councils, which the Federal Government has been working to implement amidst subtle resistance from state governors.
A reliable source within the Federation Account Allocation Committee (FAAC) disclosed that disbursements for this month’s allocations to all tiers of government will reflect the new arrangement. This step marks the culmination of months of effort to ensure a seamless transition while addressing concerns over the state/local government joint account, which has long been criticized for allowing state governments undue control over LGA funds.
“A few LGAs have already started receiving their direct allocations, but by January 2025, all 774 councils will fully transition to this autonomous structure,” a member of the Inter-Ministerial Committee tasked with implementing the judgment confirmed. The official added that the committee would reconvene in January to finalize measures and tackle any lingering issues, including attempts by some governors to undermine the autonomy of elected LGA officials.
The Supreme Court's judgment, hailed as a victory for democracy, seeks to empower LGAs to manage their funds independently, fostering accountability and grassroots development. However, governors across various states have expressed displeasure, citing concerns over the financial implications of the move.
The committee member underscored the significance of this transition, stating, “This is a critical juncture in Nigeria’s governance structure. We will ensure that all measures are in place to prevent state interference in local government administration.”
With the Accountant-General of the Federation set to authorize the complete rollout after the January review, the stage is set for a historic shift in Nigeria’s federal system, bringing hope for enhanced transparency and development at the grassroots level.
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