•••Federation Accounts Allocation Committee (FAAC) Confirms Move
In a significant development for local governance in Nigeria, local councils are expected to start receiving direct allocations from the Federation Account beginning next month. This change will initiate with the disbursement of this month’s allocation to various tiers of government, as confirmed by a source familiar with the matter over the weekend.
The direct payment system from the Federation Accounts Allocation Committee (FAAC) aims to implement the Supreme Court’s July 11 ruling that granted financial autonomy to local councils. This ruling had faced delays due to resistance from several governors who were dissatisfied with the decision.
A member of the Inter-Ministerial Committee established to enforce the Supreme Court judgment revealed that all necessary obstacles have now been cleared for the direct allocation process to commence. While some councils have already been receiving direct allocations, the full rollout is scheduled for next month.
The source stated, “A few local government areas (LGAs) have already begun receiving their allocations directly, but all 774 LGAs will fully start receiving their allocations from January 2025.” The committee plans to reconvene in January to assess progress and finalize measures before the Accountant-General of the Federation issues authorization for the complete implementation.
This move is seen as a critical step towards empowering local councils to effectively fulfill their constitutional responsibilities without undue interference from state governors. The committee’s chair, Secretary to the Government of the Federation (SGF) George Akume, alongside other members, is committed to ensuring that democratically elected local government officials are not coerced into serving state interests.
The recent suspension of elected local government chairmen and deputies in Edo State by the House of Assembly has raised concerns about the autonomy of local governments. Governor Monday Okpebholo’s petition, which accused the officials of insubordination for not providing financial statements, has been criticized as undemocratic.
“It is highly undemocratic for governors to dissolve elected LGAs. Such actions undermine the autonomy granted to local governments and create an environment where LGAs become pawns in the hands of state executives,” the source remarked.
President Bola Ahmed Tinubu has shown support for the financial independence of councils, emphasizing the importance of implementing constitutional provisions that recognize councils as the third tier of government. The Attorney-General of the Federation, Lateef Fagbemi, has threatened to initiate contempt proceedings against governors who fail to comply with the Supreme Court ruling.
Fagbemi justified the need for local government autonomy, stating, “Local government autonomy is meant to empower the grassroots, not enrich individuals. Any chairman found guilty of diverting funds will face severe legal consequences.”
Despite some states attempting to bypass the Supreme Court ruling, such as Anambra State’s legislation requiring councils to remit part of their allocations into a state-controlled joint account, other states like Nasarawa have aligned with the ruling by abolishing joint accounts altogether.
As the implementation of direct allocations approaches, former National President of the Association of Local Governments of Nigeria (ALGON), Aminu Muazu Maifata, has urged council chairmen to focus on improving the lives of their constituents by channeling resources into essential programs and addressing pressing challenges such as insecurity and infrastructure gaps.
Maifata stated, “I expect them to work towards improving the lives of the people at the grassroots. We already set a template when the Supreme Court judgment was delivered, and each chairman knows what to do if the resources are available.”
With the January 2025 meeting on the horizon, the inter-ministerial committee is poised to ensure that local councils can operate independently and effectively, marking a pivotal moment in Nigeria’s governance structure.
