Nigeria’s Local Governments Set to Receive Direct Allocations from FAAC
In a major step towards local government autonomy, the Presidency has announced that local government areas across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC) starting at the end of January. This move follows a landmark ruling by the Supreme Court in July 2024, which declared that state control over local government funds is unconstitutional.
During an interview on Arise News, Sunday Dare, the Special Adviser to the President on Media and Public Communications, confirmed that President Bola Tinubu is fully committed to implementing the Supreme Court’s decision. The ruling, delivered by Justice Emmanuel Agbim, mandates that allocations to local governments should be paid directly, or through states, with the latter option being deemed ineffective. Consequently, the Federal Government is ensuring that direct payments to local councils will commence by the end of this month.
Dare explained that local governments would now have access to far greater financial resources. For example, one local government chairman shared with him that his allocation would increase from N200 million to N2.9 billion, highlighting the significant impact of the policy.
Dare also took the opportunity to call for increased scrutiny of how state and local governments manage their finances. He pointed out that while the Federal Government is often criticized, the handling of funds by states and local governments deserves equal attention. He cited the example of one state that collected N499 billion in 2024—almost four times its previous allocation—yet showed little progress in visible projects.
“We need to hold states and local governments accountable,” Dare said, emphasizing that the three tiers of government were designed to function independently and responsibly. This move towards financial autonomy for local governments is seen as an effort to enhance transparency and accountability in Nigeria’s governance system.
