The 774 local government areas across Nigeria are set to begin receiving direct financial allocations from the Federation Account, following a directive from the Association of Local Governments of Nigeria (ALGON).
In a statement dated March 5, 2025, and signed by its Acting Director General, Mrs. Evan Enekwe, ALGON instructed all council chairmen to immediately visit the nearest branch of the Central Bank of Nigeria (CBN) to finalize necessary documentation.
The directive comes in response to the operationalization of local government accounts, which will now receive monthly revenue allocations directly, in compliance with the Supreme Court judgment of July 11, 2025, granting financial autonomy to local councils.
According to ALGON, while the CBN has already opened accounts for all local governments and area councils, these accounts must undergo a due diligence process, including Know Your Customer (KYC) procedures, before becoming fully functional.
“Every local government chairman is hereby requested to visit the nearest CBN branch to complete all outstanding documentation and procedures to ensure the seamless implementation of financial autonomy for local governments,” the letter stated.
ALGON emphasized the urgency of compliance, reiterating that the move aligns with the Supreme Court’s ruling to enhance governance at the grassroots level.
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