From Our Correspondent
The federal government is set to commence direct disbursement of monthly allocations to local government councils from January 2025, marking a significant shift in Nigeria’s governance structure.
The move aligns with the July 11 Supreme Court judgment granting financial autonomy to councils.
This development will see the Federation Account Allocation Committee (FAAC) directly transferring funds to all 774 Local Government Areas (LGAs), bypassing the contentious state/local government joint accounts.
A source from the Inter-Ministerial Committee overseeing the implementation confirmed this during the weekend, noting that while some councils had already begun receiving direct payments, full rollout is expected next month.
Breaking State Resistance
The implementation faced subtle resistance from governors, many of whom are reportedly displeased with the Supreme Court’s decision.
However, approval has now been secured to enforce financial autonomy for councils.
“A few LGAs have already started receiving their direct allocations, but by January, all will fully transition to the new system,” the source said, adding that the committee will reconvene next month to finalize operational measures and monitor compliance.
Presidential Support and Oversight
President Bola Ahmed Tinubu has backed the financial independence of councils, emphasizing their constitutional role as the third tier of government.
The Inter-Ministerial Committee, chaired by Secretary to the Government of the Federation (SGF) George Akume, includes key figures such as the Coordinating Minister of the Economy Wale Edun and Attorney-General of the Federation Lateef Fagbemi (SAN).
Fagbemi has warned governors against defying the Supreme Court ruling, threatening contempt proceedings against non-compliant states.
He stressed that local government autonomy aims to empower the grassroots and that any misuse of funds by council officials will be met with strict legal action.
Challenges and Outlook
The transition has not been without controversy. For instance, the Edo State House of Assembly recently suspended local government chairmen and deputies on allegations of insubordination, prompting criticism of state interference.
“This suspension is highly undemocratic and undermines the autonomy granted to local governments,” a committee member said, calling for robust mechanisms to protect elected council officials from undue state influence.
The federal government’s renewed push for local government autonomy is seen as a vital step in empowering councils to deliver essential services and improve governance at the grassroots level.
Stakeholders are hopeful that this development will foster transparency, accountability, and capacity building across Nigeria's LGAs.
