In a landmark shift toward financial autonomy, all 774 local government areas (LGAs) in Nigeria will begin receiving direct allocations from the Federation Account starting January 2025. This follows the Supreme Court’s July 11 ruling granting financial independence to local councils.
A source familiar with the development disclosed to The Nation that the December 2024 allocation will be disbursed directly to local councils in January, ending the delays in implementing the court’s judgment.
While some local councils had already begun receiving direct allocations, this directive will extend the policy nationwide, ensuring financial independence for every LGA.
Resolution of Key Hurdles
The Inter-Ministerial Committee tasked with overseeing the implementation confirmed that all outstanding challenges have been addressed. A member of the committee said, “A few LGAs have already started receiving their direct allocations, but come January 2025, all 774 LGAs will be included.
“Our committee will reconvene in January to review the progress and finalize measures before the Accountant-General of the Federation authorizes the complete rollout. This represents a critical turning point in Nigeria’s governance structure.”
Governors’ Resistance
Despite the Supreme Court’s ruling, many state governors have resisted the directive, expressing dissatisfaction with the move to bypass the joint state-local government account. The new system reduces the governors’ control over local council funds, a shift many argue is essential for transparency and accountability.
The committee member highlighted ongoing interference, citing cases where governors undermined the autonomy of democratically elected local officials.
For example, in Edo State, the governor allegedly influenced the suspension of elected council chairmen over financial disputes. “It is undemocratic for governors to dissolve elected LGAs,” the source stated. “Such actions violate the autonomy granted to local governments and risk making councils tools of state executives.”
Federal Government’s Support
President Bola Ahmed Tinubu’s administration has demonstrated strong backing for local government financial autonomy. The Inter-Ministerial Committee, chaired by Secretary to the Government of the Federation (SGF) George Akume, has worked diligently to implement the Supreme Court ruling.
The committee includes key figures such as Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant-General of the Federation Oluwatoyin Madein, Central Bank Governor Olayemi Cardoso, and Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu.
Ensuring Accountability
The January 2025 meeting of the committee will not only review progress but also address governors’ attempts to undermine local government autonomy. Measures will be implemented to ensure elected LGA chairmen, deputies, and councillors can perform their duties without interference.
“This marks a new era for grassroots governance in Nigeria,” the source said. “The Federal Government is committed to ensuring that financial independence translates into improved services and accountability at the local level.”
As the rollout begins, stakeholders anticipate significant improvements in the efficiency and transparency of local council operations, which are critical for grassroots development across the nation.
