Councils to Receive Direct Allocations Starting January 2025

Local government councils across Nigeria will begin receiving direct allocations from the Federation Account next month, marking the start of a new era of financial autonomy.

This development follows the Supreme Court’s July 11 judgment, which granted financial independence to local councils. The direct disbursement will commence with this month’s allocation to the three tiers of government, according to a source familiar with the matter.

The implementation of the Supreme Court’s judgment has faced delays due to subtle resistance from state governors, many of whom are reportedly displeased with the ruling. Despite these challenges, the Federal Government has worked to minimize disruptions to the operations of state and local governments.

A member of the Inter-Ministerial Committee tasked with enforcing the Supreme Court’s judgment revealed that all outstanding issues have been addressed, and the direct allocations to local government areas (LGAs) will be fully operational by January 2025.

“A few LGAs have already started receiving their direct allocations, but all of the 774 LGAs will fully start receiving their allocations from January 2025,” the source said.

The committee member further explained that their January meeting will review the progress of the implementation and finalize measures for the complete rollout.

“Our committee will reconvene in January to review its progress and finalize measures before the Accountant-General of the Federation issues authorisation for the complete rollout,” the source added.

This move is seen as a significant shift in Nigeria’s governance framework, aiming to empower local councils to execute their constitutional responsibilities without undue interference from state governors.

The source also noted concerns over the actions of some state governors attempting to undermine the autonomy of local government officials. “Our January 2025 meeting will also address the actions of governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies, and councillors, ensuring they are not coerced into serving state interests,” the source explained.

The recent suspension of democratically elected local government chairmen and deputies by the Edo State House of Assembly, allegedly over insubordination claims, was highlighted as an example of the challenges faced in implementing financial autonomy.

The move to ensure direct allocation is expected to strengthen the capacity of local governments to serve their communities effectively, free from the constraints of state-level control.