GOVERNMENT

Local Governments to Receive Direct Allocations as CBN Opens Dedicated Accounts – ALGON Directs Chairmen to Complete Documentation

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4 days ago

March 7, 2025

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The local government areas across the country are set to begin receiving direct financial allocations from the Federation Account.

Following this development, the Association of Local Governments of Nigeria (ALGON) has directed all council chairmen nationwide to immediately proceed to the nearest Central Bank of Nigeria (CBN) branch to complete all outstanding documentation and procedures.

ALGON explained that this move follows the implementation of the local government accounts into which monthly revenue allocations from the Federation Account will be paid, in accordance with the Supreme Court judgment.

The directive, obtained by Vanguard in Abuja yesterday, was issued in a written correspondence dated March 5, 2025. It was signed by the ALGON Acting Director General, Mrs. Evan Enekwe.

The letter read:

“In compliance with the Supreme Court judgment of July 11, 2025, which granted financial autonomy to local government councils, I am directed to inform you that the CBN has graciously opened accounts for the 774 local governments and area councils in Nigeria.

“However, for these local government accounts opened by the CBN to become effective and operational, certain due process requirements and protocols must be completed between individual councils and the CBN, including Know Your Customer (KYC) diligence by the bank.

“Consequently, every local government chairman is hereby requested to visit the nearest CBN branch to their council to complete all outstanding documentation and procedures. This step is essential for the full operationalization of the local government accounts, ensuring that monthly revenue allocations from the Federation Account are received as mandated by the Supreme Court judgment.