In a significant move to ensure financial autonomy for local governments, the presidency has announced that all 774 Local Government Areas (LGAs) across Nigeria will begin receiving direct allocations from the Federal Allocation Account Committee (FAAC) starting at the end of January 2025.
This follows a landmark Supreme Court ruling in July 2024, which declared state control over local government funds unconstitutional. 
The special adviser to the president on media and public communications, Sunday Dare, made this known during an interview with Arise News on Thursday night.
Dare emphasized President Bola Tinubu’s commitment to empowering local governments through direct access to funds, ensuring transparency and accountability in the management of resources.
“We have a president who ensures local government autonomy,” Dare stated.
He further revealed the impact of this policy on local governments, sharing the account of a local government chairman who said, “Oh, I will be getting ₦2.9bn, instead of the ₦200m I was getting before.”
The Supreme Court’s decision stems from a suit filed by the Attorney General of the Federation, Lateef Fagbemi (SAN), advocating for financial independence for local governments.
In a unanimous judgment delivered by Justice Emmanuel Agbim, the court directed that local government funds should be paid directly to them or through states.
However, inefficiencies in the state-controlled method led to the court’s insistence on direct payments.
Dare acknowledged the delay in implementing the court’s ruling but assured Nigerians that appropriate systems are now in place.
He highlighted the importance of greater accountability at all levels of government, urging Nigerians to scrutinize how states and local governments manage their resources.
“One state collected ₦499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” Dare noted.
He called on Nigerians to hold all tiers of government accountable, stating, “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.
This policy is expected to transform the financial landscape for local governments, enabling them to invest directly in critical areas such as infrastructure, education, and healthcare.
The autonomy will allow local councils to address the unique challenges within their jurisdictions, boosting development at the grassroots level.
Meanwhile, Dare stressed the importance of citizen involvement in ensuring the funds are used judiciously.
He added, “Public engagement and vigilance are critical to ensuring that these resources translate into meaningful development for Nigerians.”
With local governments set to receive a substantial increase in their allocations, this move is anticipated to reduce inefficiencies and foster a more equitable distribution of resources across Nigeria.
By ensuring financial transparency and accountability, the initiative aligns with President Tinubu’s broader vision for a more inclusive and sustainable national development.
