LOCAL GOVERNMENTS TO RECEIVE FEDERAL ALLOCATIONS DIRECTLY THIS MONTH
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In a significant development, the presidency has announced that local governments across Nigeria will start receiving their allocations directly from the Federal Allocation Account Committee (FAAC) this month.
This move follows the Supreme Court’s landmark judgment in July 2024, which declared state control over local government funds unconstitutional .
The court ruled that allocations to local governments should be paid directly or through states. However, due to the ineffectiveness of the latter, the court mandated that funds be paid directly to local councils. This judgment was a result of a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial autonomy of Nigeria’s 774 local government areas.
According to Sunday Dare, Special Adviser to the President on Media and Public Communications, local government chairmen will receive their allocations directly, with one chairman confirming that he will receive N2.9 billion, a significant increase from the N200 million he previously received .
The presidency has emphasized the need for greater scrutiny of state and local government financial management, highlighting that some states have received significant allocations without showing corresponding development .
