Nigeria Takes Bold Step Toward Local Government Autonomy with Direct FAAC Disbursements

In a significant development for local government autonomy in Nigeria, the Federal Government is taking decisive steps today toward enforcing the Supreme Court’s ruling that mandates direct disbursements of funds to the 774 local government areas from the Federation Account Allocation Committee (FAAC).

An Inter-Ministerial Committee, tasked with implementing the landmark judgment, is set to begin a two-day meeting in Abuja. The discussions will focus on finalizing the processes for ensuring the Supreme Court’s directive is carried out effectively.

Chaired by the Secretary to the Government of the Federation (SGF), Senator George Akume, the committee includes key figures such as the Minister of Finance, Wale Edun; Attorney-General and Minister of Justice, Lateef Fagbemi (SAN); Minister of Budget and Economic Planning, Atiku Bagudu; and the Accountant-General of the Federation (AG-F), alongside representatives from the Central Bank of Nigeria (CBN) and the Nigeria Governors’ Forum (NGF), among others.

The key agenda is to implement the Supreme Court’s decision, which mandates that local governments will now receive funds directly from the FAAC, bypassing the previous practice where governors controlled the disbursements through joint accounts.

A government source revealed that the Attorney-General has finalized plans to begin the disbursement of funds to democratically elected councils this week. The committee’s focus will be to ensure financial and administrative independence for local governments, despite strong opposition from some state governors, who have historically controlled local government funds.

“We are working to finalize measures to safeguard the autonomy of local governments and prevent interference from governors who are seeking to maintain control over FAAC allocations,” a committee member shared anonymously. The committee is expected to explore countermeasures to ensure the ruling is respected despite ongoing resistance from some state governments.

The discussions will also address concerns raised by governors who are attempting to pass state laws that could undermine local government autonomy, particularly by retaining oversight over FAAC allocations. “We are awaiting the Attorney-General’s guidance, after which we will take our position on how to proceed,” the source added.

The two-day meeting aims to evaluate progress and establish clear operational frameworks for the direct disbursement of funds to local governments. A key focus will be addressing governors’ efforts to undermine the autonomy of local government chairmen, deputies, and councilors.

Despite the Supreme Court’s ruling, which demands the independence of local governments, some state governors continue to push for measures that would allow them to retain control over funds meant for grassroots development. A senior official from the Accountant-General’s office confirmed that preparations for the direct disbursements are in place, with a dedicated department ensuring a smooth transition.

The official reassured that the process would proceed without significant challenges, noting that the structure to implement the changes has already been set up. “There’s no challenge in implementing the Supreme Court’s decision. The process is ready to go,” the official confirmed.

Finance Minister Wale Edun may consult with President Bola Ahmed Tinubu upon his return this week to discuss strategies for managing the resistance from governors. “We are proceeding with direct payments to local governments, as the judgment mandates. We are ready to begin implementing,” the source said.

This move marks a transformative shift in local government administration, aiming to curb undue interference by state governors who have historically controlled the flow of funds meant for local development. By ensuring that local governments have direct access to their allocations, the government hopes to enhance grassroots governance and promote transparency and accountability at the local level.