Autonomy: FG to disburse allocations directly to 774 councils by January – Presidency

Beginning from January 2025, the 774 local government councils across the country will start receiving their allocations directly from the Federal Allocation Account Committee (FAAC), marking a significant step towards local government autonomy, the Presidency has announced.

Mr. Sunday Dare, the Presidential Adviser on Media and Public Communications, who disclosed this during an interview on Arise News late on Thursday monitored by Persecondnews, restated President Bola Tinubu’s commitment to implementing the Supreme Court’s landmark July 2024 judgment, which declared state control over local government funds unconstitutional.

“We have a President who ensures local government autonomy. I spoke to a local government chairman, who said, ‘Oh, I will be getting N2.9bn, instead of the N200m I was getting before’. From the end of this month, LG will receive the money directly,” Dare explained.

In a unanimous decision delivered by Justice Emmanuel Agbim, the apex court ruled that allocations to local governments should either be paid directly or through states.

However, as a result of the ineffectiveness of the judgment, the court directed payments to the councils.

The judgment followed a suit filed by the Attorney General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN), advocating the financial autonomy of the local governments as the third tier of government.

On the delayed implementation of the judgment, Dare confirmed that the arrangements are now complete and in place, paving the way for local governments to begin receiving funds directly by the end of January.

Dare, who also called for greater scrutiny of state and local government financial management, said: “One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it.”

He said while the Federal Government often faces criticism over the management of its finances, attention should also shift to how states and local governments utilize their resources.

“The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”