The Office of the Accountant-General of the Federation (OAGF) has created a dedicated unit to facilitate the direct disbursement of funds to Nigeria’s 774 local government areas (LGAs), marking a significant step toward the implementation of financial autonomy for the third tier of government. This initiative is set to commence in January 2025.
The Federation Account Allocation Committee (FAAC) will hold its first meeting of the year on Wednesday, where key operational details regarding the direct allocation of funds to LGAs are expected to be discussed, according to The Nation.
Insiders from the OAGF revealed that all necessary structures and processes are in place to ensure a smooth transition. “Most of the 774 LGAs will fully start receiving their allocations from January 2025. Our committee will reconvene later this month to review its progress and finalize measures before the Accountant-General of the Federation (AGF) issues authorization for the complete rollout,” an official disclosed.
This development follows the approval of the disbursement plan by Finance Minister and Coordinating Minister of the Economy, Wale Edun. The ministry has assured that the process will be seamless. “There will be no challenge to carry out the approval from the Minister to start making the disbursements to the LGAs. It’s something they (ministry officials) do day in, day out for the states,” a source explained.
An inter-ministerial committee, set up to enforce the Supreme Court judgment on direct revenue allocation to councils, has reportedly made significant progress. The committee is also tasked with addressing attempts by some state governors to undermine the autonomy of democratically elected LGA officials, including chairmen, deputies, and councilors.
George Akume, Secretary to the Government of the Federation and chair of a presidential committee, is leading efforts to ensure seamless implementation of the Supreme Court’s judgment.
Additionally, many states are preparing for the rollout, with most having conducted council elections to meet the federal government’s condition for accessing monthly allocations. States like Lagos and Ondo are in the process of organizing elections to comply with this requirement, thereby strengthening grassroots governance.
This initiative underscores the federal government’s commitment to empowering LGAs through financial independence, fostering grassroots development, and enhancing democratic governance at the local level.