From January 2025, every of the 774 Local Government Areas (LGAs) in Nigeria will receive direct allocations from the Federal Government, marking a significant shift in governance.
This development is sequel to a landmark Supreme Court ruling in July, granting full autonomy to LGAs, which allows them to manage their funds independently. Under the new regim, allocations from the Federation Accounts Allocation Committee (FAAC) will bypass State governments, ensuring Councils have direct access to their resources.
Some LGAs have already begun receiving funds directly, but by January, all Councils will transition to this system. This change ends a long-standing practice where State governments controlled Local government finances, often leading to disputes and inefficiencies.
Although, many State governors opposed the ruling, the Federal Government has removed all barriers to its implementation. However, some States continue to resist by enacting laws aimed at maintaining control over Council funds.
The Federal Government issued a stern warning to Governors, cautioning against interference with LGA funds and pledging legal action against any attempts to undermine autonomy.
Council leaders have been urged to use the funds responsibly to improve essential services such as roads, water supply, and other community needs. The emphasis is on solving local problems and enhancing the quality of life for residents
Direct allocations have already begun for some LGAs, with full implementation for all Councils set for January 2025.
The Federal Government’s committee overseeing the transition will reconvene in January to assess progress and finalise measures for the Accountant-General of the Federation to authorise complete rollout.
The Committee will also address actions by Governors attempting to undermine the autonomy of elected LGA officials, ensuring Councils operate independently.
This change represents a pivotal moment in Nigeria’s governance structure, empowering Local governments to directly address the needs of their communities.
