In a groundbreaking move towards empowering local governments, the Presidency has confirmed that starting at the end of January, local government areas (LGAs) across Nigeria will receive their allocations directly from the Federal Allocation Account Committee (FAAC).
This major policy shift is seen as a significant step in the drive for local government autonomy.
The announcement was made by Sunday Dare, the Special Adviser to the President on Media and Public Communications, during an interview on Arise News Thursday night.
He highlighted that the new arrangement was part of President Bola Tinubu’s commitment to fully implementing the Supreme Court’s landmark ruling from July 2024, which declared state control over local government funds unconstitutional.
In its unanimous decision, the Supreme Court, led by Justice Emmanuel Agbim, ruled that local government allocations should be paid directly from the federal purse, bypassing states.
This judgment came after the Attorney General of the Federation, Lateef Fagbemi (SAN), filed a suit advocating for the financial autonomy of Nigeria’s 774 LGAs.
Although the ruling was made months ago, its implementation had been delayed to ensure the necessary infrastructure and systems were in place.
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With those arrangements now completed, Dare confirmed that by the end of this month, LGAs will start receiving their allocations directly from FAAC.
Dare emphasized the transformative impact of the new system. “We have a President who is committed to local government autonomy.
I spoke to a local government chairman who said, ‘I’ll be getting N2.9bn instead of the N200m I was getting before.’ From the end of this month, LGAs will receive the funds directly,” he explained.
Additionally, Dare called for increased scrutiny of how states and local governments manage their financial resources.
“One state collected N499 billion last year—nearly four times its previous allocation—but there’s little to show for it,” he remarked, stressing the need for greater transparency and accountability at the state and local government levels.
He further stated that while the Federal Government often faces scrutiny, attention must also shift to how funds are utilized by state and local authorities.
“The constitution was designed with three tiers of government for a reason. It’s time to hold states and local governments accountable,” Dare concluded.
 across Nigeria will receive their allocations directly from the Federal Allocation Account Committee (FAAC).){kind=link}