Kehinde Fajobi
The Federation Account Allocation Committee (FAAC) has withheld the direct disbursement of statutory allocations to Nigeria’s 774 local governments for January due to their failure to submit account details on time.
Instead, the councils’ funds will be channelled through state governments, according to a source familiar with the matter.
However, allocations for Universal Basic Education Commission (UBEC) and Primary Health Centres (PHC) will be transferred directly from the Federation Account.
FAAC announced the release of ₦860.252 billion to state governments for January, with ₦498.498 billion allocated to the states and ₦361.754 billion earmarked for local governments.
An anonymous FAAC official explained, “The January allocation did not go to the local governments but to their state accounts. If they have started submitting their accounts, their February allocations will go to them.
“That will signal the commencement of their autonomy as desired by the Bola Tinubu administration.”
The Office of the Accountant-General of the Federation (OAGF) and other stakeholders are working to address the delays and ensure compliance with a 2024 Supreme Court ruling granting local governments financial autonomy.
Another FAAC official stated, “The Federal Government is determined to make sure that local government autonomy becomes a reality. Things are moving in the right direction.”
An inter-ministerial committee, chaired by Secretary to the Government of the Federation (SGF) Senator George Akume, is developing a framework to enforce the ruling.
The template will allow the Accountant-General to deduct funds meant for local government responsibilities like primary education and healthcare directly from FAAC allocations and channel them to relevant agencies.
Attorney-General of the Federation Lateef Fagbemi had previously sought court intervention to stop governors from interfering in local government finances.
On July 11, 2024, the Supreme Court ruled in favour of local government financial autonomy, setting a historic precedent.
To implement the judgment, the Federal Government instructed councils to open dedicated Central Bank of Nigeria (CBN) accounts to receive direct allocations. However, delays have persisted.
Bello Lawal Yandaki, president of the Association of Local Governments of Nigeria (ALGON), attributed the setbacks to procedural issues.
“The CBN is presently awaiting directives from the Federal Government to open local government accounts, which can be done within 24 to 48 hours,” Yandaki assured.
He expressed confidence that once the accounts are operational, disbursements will proceed without further complications.