In a landmark move to enhance local government autonomy in Nigeria, President Bola Ahmed Tinubu has directed the Federal Allocation Account Committee (FAAC) to commence direct disbursement of funds to the nation’s 774 local government areas by the end of January.
This announcement was made by Sunday Dare, the Special Adviser to the President on Media and Public Communications, during an interview on Arise News Thursday night. Dare underscored the President’s unwavering commitment to implementing the Supreme Court’s historic July 2024 judgment, which declared state control over local government funds unconstitutional.
The Supreme Court ruling, delivered by Justice Emmanuel Agbim, mandated direct payments to local councils, citing the ineffectiveness of routing funds through state governments. The decision followed a suit filed by the Attorney General of the Federation, Lateef Fagbemi, SAN, advocating for financial independence for local governments.
Speaking on the progress, Dare revealed that arrangements have been finalized to enable local councils to access their allocations without interference.
“One local government chairman told me he will now receive N2.9 billion instead of the N200 million he used to get,” Dare said. He further highlighted disparities in state financial management, citing a state that collected N499 billion last year with minimal visible impact.
This initiative, according to Dare, is part of President Tinubu’s broader agenda to strengthen the three tiers of government and promote transparency.
“The framers of our constitution designed the three tiers of government for a reason. While the Federal Government often faces scrutiny, it’s time to hold states and local governments equally accountable,” Dare added.
The new payment system is expected to revolutionize grassroots development, empower local administrations, and ensure greater accountability in the management of public funds.
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