Local government councils across Nigeria will begin receiving direct allocations from the Federation Account starting next month.
Grassroots Parrot gathered that this development follows the disbursement of this month’s allocation to various tiers of government, a reliable source disclosed over the weekend.
The move marks a significant step towards implementing the Supreme Court’s July 11 judgment, which granted financial autonomy to local councils.
Since the landmark ruling, the Federal Government has worked to ensure minimal disruptions to state and local government operations while addressing resistance from state governors unhappy with the judgment.
The Supreme Court’s decision effectively dismantled the state/local government joint account system, which had previously allowed governors to exert control over council finances.
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Despite subtle resistance, a member of the Inter-Ministerial Committee established to enforce the judgment confirmed that all necessary approvals for direct allocations have been secured.
“Although a few local government areas (LGAs) have already started receiving their allocations directly, all 774 LGAs will fully transition to this system starting in January 2025,” the source stated.
The committee will reconvene early next year to review its progress and address potential obstacles, including attempts by governors to undermine the autonomy of elected local government officials.
Resistance from some state governments continues to threaten the autonomy of local councils. For instance, the Edo State House of Assembly recently suspended democratically elected local government chairmen and deputies over allegations of insubordination, prompting criticism from the committee and civil society.
“This type of action is undemocratic and undermines the autonomy granted to local governments,” a source from the committee lamented.
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While states like Anambra have passed laws mandating LGAs to remit portions of their allocations to state-controlled accounts, other states, such as Nasarawa, have embraced the Supreme Court’s ruling.
Nasarawa’s governor, Abdullahi Sule, signed legislation abolishing joint accounts and restructuring the local government system to comply with the judgment.
President Bola Ahmed Tinubu has expressed his full support for local government autonomy. The inter-ministerial committee, chaired by Secretary to the Government of the Federation (SGF) George Akume, is actively enforcing constitutional provisions that recognize councils as the third tier of government.
Senate President Godswill Akpabio also advocated for constitutional amendments to eliminate ambiguities in Section 162(6) of the 1999 Constitution, which established the state/local government joint accounts.
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The immediate past National President of the Association of Local Governments of Nigeria (ALGON), Aminu Muazu Maifata, urged council chairmen to prioritize grassroots development with their direct allocations.
“I expect them to use these resources to tackle insecurity, water shortages, and infrastructure gaps while implementing programs that improve the lives of the people at the grassroots,” Maifata said.
ALGON has provided a template to guide the judicious use of FAAC allocations, emphasizing capacity building and governance reforms to strengthen local administrations.
With the Federal Government’s renewed commitment to local government autonomy and the anticipated full rollout of direct allocations by January 2025, Nigeria may witness significant improvements in grassroots governance.
However, challenges such as state interference and the efficient use of funds by councils remain key issues to address as this critical governance reform takes shape.