The Presidency has announced that, starting from the end of January 2025, local government areas in Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC). This groundbreaking move followed the Supreme Court’s landmark ruling in July 2024, which declared the state control over local government funds unconstitutional.
In an interview with Arise News on Thursday night, Special Adviser to the President on Media and Public Communications, Sunday Dare, affirmed President Bola Ahmed Tinubu’s commitment to upholding the Supreme Court’s judgment, ensuring local government autonomy across the country.
Dare highlighted that the new arrangement would bring substantial financial benefits to local governments. He shared an example from a local government chairman, who revealed that his council would now receive N2.9 billion directly, as opposed to the N200 million it had previously received.
“This is a significant change. From the end of this month, local governments will receive their funds directly, and this will go a long way in improving governance at the grassroots level,” Dare stated.
The move is expected to boost local governance and accountability, as it bypasses state governments and ensures that councils receive funds directly from the federal government. The Special Adviser emphasized the importance of focusing on the performance of state and local governments, noting that many states have seen increased allocations in recent years but have not shown corresponding improvements.
The new policy represents a crucial step towards financial autonomy for Nigeria’s local governments, aligning with the broader goal of decentralizing power and resources across federal, state, and local levels of government.
