Federal Government has announced that, starting from the end of January, allocations will be disbursed directly to local government areas.
This development aligns with a landmark Supreme Court judgment that declared state control over local government funds unconstitutional.
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Speaking during an interview on Arise News, the Special Adviser to the President on Media and Public Communications, Sunday Dare, emphasized President Bola Tinubu’s unwavering commitment to decentralizing governance and empowering local governments.
The Supreme Court ruling, delivered by Justice Emmanuel Agbim in July 2024, mandated direct payments to local councils, citing the inefficiency of routing funds through state governments.
The decision followed a suit initiated by the Attorney General of the Federation, Lateef Fagbemi (SAN), who advocated for financial independence for Nigeria’s 774 local government areas.
While the judgment initially faced delays in implementation due to the need for proper mechanisms, Dare confirmed that all necessary arrangements are now complete. “From the end of this month, local governments will receive their allocations directly. This is a step forward for local government autonomy,” he stated.
Highlighting the significance of this reform, Dare shared an example of a local government chairman who revealed that their allocation would rise from N200 million to N2.9 billion under the new system.
Dare also underscored the importance of transparency and accountability in the management of funds at all levels of government. He criticized the mismanagement of resources in some states, pointing out that one state received N499 billion last year but failed to show tangible developmental outcomes.
“This is not just about giving more resources to local governments. It is about ensuring those resources are used effectively for the benefit of the people. The framers of our constitution created three tiers of government for a reason. We must now hold states and local governments accountable for how they utilize these funds,” Dare urged.
