See When Direct Payment to Local Governments is Set to Begin
Unless there are unforeseen changes, local councils in Nigeria are set to begin receiving direct allocations from the Federation Account next month. This will mark the start of the disbursement of funds for this month, according to sources familiar with the development.
The move to disburse directly to councils is in line with the implementation of the Supreme Court’s ruling on July 11, which granted financial autonomy to local governments. The direct payments will end the delays that have surrounded the judgment’s enforcement. Since the ruling, the federal government has worked to minimize disruption to local government operations.
Despite this, governors, many of whom oppose the judgment, have shown resistance to breaking the established joint account system, which has traditionally channeled funds to local councils. However, a member of the Inter-Ministerial Committee tasked with ensuring compliance with the Supreme Court’s decision revealed that the green light has been given for the full implementation of direct allocations to local governments starting next month.
Though some councils have already been receiving direct allocations, the process is expected to be fully operational by January 2025. The committee member confirmed that 774 local government areas (LGAs) will start receiving their due allocations next year, and a meeting will be held in January to review progress and finalize the next steps. The committee will also discuss the actions of state governors attempting to undermine the autonomy of elected local government officials, ensuring they are not pressured to serve state interests.
This change is seen as a crucial step toward strengthening local governments’ ability to carry out their constitutional responsibilities without undue interference from state governors. It is also viewed as vital for the empowerment of councils to better serve the needs of their communities.
The move comes at a time when there has been concern over the suspension of elected local government chairmen and their deputies in Edo State, following allegations of insubordination from the state governor. A source criticized such actions, labeling them undemocratic and detrimental to the autonomy granted to local governments.
Meanwhile, the leadership of the Association of Local Governments of Nigeria (ALGON) has called on chairmen to prioritize the judicious use of their FAAC allocations. Maifata, a former ALGON president, emphasized that local government leaders should focus on essential issues such as improving security, addressing water shortages, and filling infrastructure gaps in rural areas. He added that ALGON has already set a framework to guide local government officials in the effective management of these resources.
Maifata also stressed the importance of capacity building for both the legislative and executive arms of local governments, encouraging the engagement of skilled resource persons to improve governance at the grassroots level.
