Presidency Announces Direct Federal Funding for Local Governments Starting January

The Nigerian Presidency has announced that local government areas across Nigeria will start receiving their allocations directly from the Federal Allocation Account Committee (FAAC) from the end of January, SAVANNAH NEWSNOW REPORTS.

Sunday Dare, Special Adviser to the President on Media and Public Communications, confirmed the development in an interview with Arise News on Thursday night.

Dare stated that the move demonstrates President Bola Tinubu’s dedication to enforcing the Supreme Court’s groundbreaking decision in July 2024, which ruled that state control over local government funds is unconstitutional and paved the way for direct federal allocations to local governments.

The Supreme Court has ruled that allocations to local governments should be paid directly, bypassing state governments, in a move expected to enhance their financial autonomy and enable more effective execution of projects and programs.

“We have a President who ensures local government autonomy,” Dare said. “I spoke to a local government chairman, who said, ‘Oh, I will be getting N2.9bn, instead of the N200m I was getting before’.”

The Presidency has also called for greater scrutiny of state and local government financial management. Dare noted that while the Federal Government often faces criticism, attention must also shift to how states and local governments utilize their resources.

“One state collected N499 billion last year—nearly four times its previous allocation—yet there’s little to show for it,” he said. “The framers of our constitution created the three tiers of government for a reason. It’s time to hold states and local governments accountable.”

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