Local Governments to Receive Direct Federal Allocations by January – Presidency

In a significant move towards local government autonomy, the Presidency has announced that local government areas across Nigeria will begin receiving their allocations directly from the Federal Allocation Account Committee (FAAC) starting at the end of January 2025.
The disclosure was made by the Special Adviser to President Bola Tinubu on Media and Public Communications, Sunday Dare, during an interview on Arise News on Thursday night.
Dare reaffirmed President Tinubu’s commitment to enforcing the Supreme Court’s landmark July 2024 judgment, which declared state control over local government funds unconstitutional. The judgment, delivered by Justice Emmanuel Agbim, mandated direct payments to local councils, citing the ineffectiveness of channeling funds through state governments.
The ruling followed a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for the financial independence of Nigeria’s 774 local government areas. Despite the apex court’s decision, the implementation was delayed to ensure proper mechanisms were established.
Dare confirmed that the necessary arrangements are now in place, and direct payments to local governments will commence by the end of January.
“We have a President who ensures local government autonomy. I spoke to a local government chairman who said, ‘Oh, I will be getting N2.9bn instead of the N200m I was receiving before,’” Dare stated.
The presidential aide also emphasized the need for greater scrutiny in the management of state and local government finances. He highlighted a case where a state reportedly collected ₦499 billion in allocations last year but showed minimal developmental progress.
“While the Federal Government often faces criticism, we must also hold states and local governments accountable for their financial management. The framers of our constitution created the three tiers of government for a reason,” Dare said.
The move towards direct allocations aligns with President Tinubu’s broader governance reforms aimed at promoting transparency, reducing financial mismanagement, and ensuring grassroots development across Nigeria’s 774 local government areas.