Local Governments in Nigeria to Receive Direct Federal Allocations by End of January 2025

In a significant development, the Presidency has announced that local governments in Nigeria will begin receiving direct federal allocations by the end of January 2025. This move is in line with the Supreme Court’s landmark judgment in July 2024, which declared state control over local government funds unconstitutional.

Background of the Development

The Supreme Court’s judgment was a culmination of a long-standing dispute between local governments and state governments over the control of funds allocated to local governments. The judgment paved the way for local governments to receive their allocations directly from the Federation Account Allocation Committee (FAAC), without interference from state governments.

Implications of Direct Federal Allocations

The direct disbursement of funds to local governments is expected to have far-reaching implications for grassroots development in Nigeria. With direct access to funds, local governments will be able to execute projects and programs more effectively, without relying on state governments for approval or disbursement of funds.

“This development is a significant step towards empowering local governments and promoting grassroots development in Nigeria,” said a statement from the Presidency. “It is expected to improve the quality of life for citizens at the local level and enhance the overall development of the country.”

Preparations for Direct Disbursement

To facilitate the direct disbursement of funds to local governments, the Office of the Accountant-General of the Federation has established a dedicated unit to oversee the process. The Federation Account Allocation Committee is scheduled to hold its first meeting of the year to discuss operational details and finalize arrangements for the direct disbursement of funds.

Timeline for Implementation

The Presidency has announced that the direct disbursement of funds to local governments will commence by the end of January 2025. This timeline is expected to be met, with all necessary arrangements and preparations being put in place to ensure a smooth transition.

The decision to allow local governments in Nigeria to receive direct federal allocations is a significant development that is expected to have far-reaching implications for grassroots development in the country. With direct access to funds, local governments will be able to execute projects and programs more effectively, without relying on state governments for approval or disbursement of funds.