National
FG Sets Date To Commence Direct Allocations From FAAC
By Gideon Ayeni
The Presidency has announced that Nigeria’s local government areas will begin receiving their federal allocations directly from the Federation Account Allocation Committee (FAAC) by the end of January 2025.
The direct allocations to local governments marks a significant step toward financial autonomy for the country’s 774 local councils.
Sunday Dare, the Special Adviser to President Bola Tinubu on Media and Public Communications, disclosed this in an interview with journalists on Thursday night. He affirmed the President’s commitment to implementing the Supreme Court’s landmark judgment of July 2024, which declared that state control over local government funds as unconstitutional.
The historic ruling, delivered by Justice Emmanuel Agbim, emphasized that allocations to local governments must be paid directly.
The court mandated direct payments to local councils due to the inefficiencies and mismanagement associated with the state-mediated arrangement.
The case, initiated by Attorney General of the Federation Lateef Fagbemi (SAN), was aimed at ensuring financial autonomy for local governments and strengthening grassroots governance across Nigeria.
Although the Supreme Court’s decision was delivered months ago, its implementation was delayed to establish proper mechanisms for direct disbursement. Sunday Dare confirmed that these systems are now in place, ensuring the smooth transfer of funds to local governments.
“We have a President who ensures local government autonomy,” Dare stated. “I spoke to a local government chairman who said, ‘Oh, I will be getting N2.9 billion instead of the N200 million I was getting before.’ From the end of this month, local governments will receive their funds directly.”
Dare also highlighted the need for increased accountability at all levels of government. He cited instances of financial mismanagement, noting that one state received N499 billion last year, almost four times its previous allocation, yet failed to deliver visible development.
“The framers of our constitution created three tiers of government for a reason. It’s time to hold states and local governments accountable,” Dare emphasized, calling for greater public scrutiny of financial management at both state and local levels.
This policy shift is expected to empower local governments, boost grassroots development, and enhance service delivery to citizens. With direct access to federal allocations, local councils will have the resources needed to execute their mandates without interference from state governments.
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