The federal and state governments have announced their readiness to commence direct disbursement of funds to all 774 local governments across the country, marking the implementation of financial autonomy for local councils starting this month.
Dedicated Unit Established for Disbursements
The Office of the Accountant General of the Federation (OAGF) has established a dedicated unit to handle the direct disbursement of funds to local governments. This move aligns with the federal government’s efforts to strengthen grassroots governance by ensuring financial independence for the third tier of government.
FAAC Meeting to Finalize Details
The Federation Account Allocation Committee (FAAC) will hold its first meeting of the year on Wednesday to finalize operational details for the direct fund allocations to local councils. Sources at the OAGF confirmed that necessary structures and processes are in place for seamless implementation.
“Most of the 774 LGAs will start receiving their allocations from January 2025,” a source revealed. The Inter-Ministerial Committee assigned to enforce the Supreme Court judgment on direct revenue allocation will reconvene later this month to review progress and finalize measures before authorization by the Accountant-General of the Federation.
Ministerial and Presidential Support
The Finance Minister and Coordinating Minister of the Economy, Wale Edun, has already approved the direct fund allocation process. A source reassured that the structure for disbursements has long been established, making the rollout straightforward.
Additionally, the committee chaired by the Secretary to the Government of the Federation (SGF), Chief George Akume, is working to address attempts by some governors to undermine the autonomy of democratically elected local council officials.
Grassroots Development in Focus
The federal government emphasized that the purpose of financial autonomy is to drive grassroots development and not impose burdens on state governors. Chief George Akume’s committee is tasked with ensuring smooth implementation of the Supreme Court’s judgment.
State-Level Readiness
Many states have shown readiness for the autonomy, meeting the key requirement of having democratically elected local council chairmen and councilors. States like Adamawa and Delta have expressed full alignment with the federal government’s directive.
Adamawa State Commissioner for Information and Strategy, James Iliya, affirmed the state’s commitment to local government autonomy, stating, “Our local governments have long been free. Local council autonomy in Adamawa State came before the recent federal-level directive.”
Delta State Finance Commissioner, Fidelis Tilije, highlighted the state’s tradition of empowering local councils, noting that since 2015, the government has provided subventions to the councils and allocated 10% of its internally generated revenue to them.
“Under ex-Governor Okowa, grants to local councils were increased from N300 million to N500 million monthly to support salaries and other responsibilities,” Tilije said.
Council Elections Underway
To ensure eligibility for direct allocations, many states have conducted local government elections, with Lagos and Ondo set to hold theirs soon.
This landmark move signifies a shift toward enhanced grassroots governance and accountability, fostering greater development at the local level.
