BREAKING NEWS: 774 LGAs To Receive Direct Allocations Starting This January

Starting January 2025, local councils across Nigeria will begin receiving direct allocations from the Federation Account, following the Supreme Court’s landmark ruling on July 11, which granted financial independence to local governments.

This month’s allocation marks the commencement of the new framework, ensuring councils receive their funds directly, without interference from state governments. The move aligns with the Supreme Court’s decision to abolish the state/local government joint account system that previously managed council funds.

The reform aims to eliminate delays in fund disbursement and grant local governments timely access to resources, enabling them to fulfill their constitutional mandates. However, resistance from state governors continues to pose challenges to the implementation of this autonomy.

According to a member of the Inter-Ministerial Committee tasked with enforcing the ruling, some local government areas have already started receiving direct allocations. By the end of January 2025, all 774 LGAs are expected to benefit from the system.

The committee plans to reconvene in January to assess its progress and finalize measures for a nationwide rollout, with the Accountant-General of the Federation authorizing the complete implementation. Additionally, the committee aims to address concerns regarding governors exerting undue pressure on local government leaders, ensuring councils operate independently of state interests.

This policy shift is considered a pivotal moment in Nigeria’s governance structure, as it empowers local councils to function autonomously. However, challenges remain, particularly in states like Edo, where the House of Assembly recently suspended elected local government officials for alleged insubordination, raising concerns about state interference.

The Inter-Ministerial Committee, chaired by Secretary to the Government of the Federation George Akume, includes other prominent officials such as Wale Edun, the Coordinating Minister of the Economy; Lateef Fagbemi, the Attorney-General of the Federation; Abubakar Bagudu, the Minister of Budget and Economic Planning; Oluwatoyin Madein, the Accountant-General; Olayemi Cardoso, the Central Bank Governor; and Muhammed Shehu, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission. Representatives from state and local governments are also part of the committee.

President Bola Ahmed Tinubu has reiterated his commitment to local government financial autonomy, emphasizing the constitutional recognition of councils as an independent tier of government.

Despite progress, concerns about compliance persist. For instance, the Anambra State House of Assembly recently passed a Local Government Administration Bill mandating councils to deposit part of their allocations into a state-managed joint account, raising questions about adherence to the Supreme Court’s ruling.

CREDIT: BusinessNews