The Federal Government has reassured Nigerians that it is making significant progress toward implementing direct funding for local governments, despite delays in the process.
Minister of Information and National Orientation, Mohammed Idris, confirmed that while the initiative has faced administrative and technical hurdles, efforts are underway to finalize the necessary structures. He reiterated the government’s commitment to ensuring full financial autonomy for the country’s 774 local government areas.
The delay follows the Supreme Court’s ruling in July last year, which granted local governments full financial independence. However, allocations are still being paid into state government accounts due to the complexities involved in establishing a direct transfer system. According to Idris, each local government must have properly structured accounts before funds can be disbursed directly.
“We believe this will be completed very soon, and direct transfers will take effect,” the minister assured.
Addressing concerns about rising food prices, Idris stated that the government would not impose price controls but is instead focusing on increasing food production through large-scale farming initiatives.
The government remains committed to completing the direct payment system and strengthening local government financial autonomy as part of broader economic and governance reforms.
