All 774 local government areas (LGAs) in Nigeria will receive direct allocations from the Federal Government starting January 2025, marking a significant shift in governance.
This development follows a landmark Supreme Court ruling in July granting full autonomy to LGAs, allowing them to manage their funds independently. Under the new system, allocations from the Federation Accounts Allocation Committee (FAAC) will bypass state governments, ensuring councils have direct access to their resources.
Some LGAs have already begun receiving funds directly, but by January, all councils will transition to this system. This change ends a long-standing practice where state governments controlled local government finances, often leading to disputes and inefficiencies.
Although many state governors opposed the ruling, the Federal Government has removed all barriers to its implementation. However, some states continue to resist by enacting laws aimed at maintaining control over council funds.
Federal Government’s Stance
The Federal Government has issued a stern warning to governors, cautioning against interference with LGA funds and pledging legal action against any attempts to undermine autonomy.
Council leaders have been urged to use the funds responsibly to improve essential services such as roads, water supply, and other community needs. The emphasis is on solving local problems and enhancing the quality of life for residents
A source revealed to The Nation that:
- Direct allocations have already begun for some LGAs, with full implementation for all councils set for January 2025.
- The Federal Government’s committee overseeing the transition will reconvene in January to assess progress and finalize measures for the Accountant-General of the Federation to authorize complete rollout.
- The committee will also address actions by governors attempting to undermine the autonomy of elected LGA officials, ensuring councils operate independently.
This change represents a pivotal moment in Nigeria’s governance structure, empowering local governments to directly address the needs of their communities.
