A Dedicated special units has been established by the Office of the Accountant-General of the Federation (OAGF) to oversee the direct disbursement of funds to Nigeria’s 774 local government areas (LGAs) to align with the planned implementation of financial autonomy for the third tier of government, set to commence this month.
The Federation Account Allocation Committee (FAAC) is likely to hold its first meeting of the year on Wednesday, during which operational details for direct fund allocations to LGAs are expected to be a key agenda item, as per the Nation with necessary structures and processes already in place to ensure smooth implementation as confirmed by sources within the OAGF.
The source disclosed, “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 finalise measures before the Accountant-General of the Federation (AGF) issues authorisation for the complete rollout,”
The source also noted that the inter-ministerial committee, established to enforce the Supreme Court judgment on direct revenue allocation to councils, has reportedly made significant progress while the finance minister and coordinating minister of the economy, Wale Edun, has already approved the direct fund disbursement plan.
Therefore, the source affirmed, “There will be no challenge to carry out the approval from the Minister to start making the disbursements to the LGAs. There won’t be a challenge because it’s something they (ministry officials) do day in day out for the states,”
The attempts by some state governors to undermine the autonomy of democratically elected LGA officials, including chairmen, deputies, and councilors will be addressed by the committee as well, the source assured.
Also, sources at the Federal Ministry of Justice confirmed that a presidential committee, led by George Akume, the secretary to the government of the federation, is working to ensure the Supreme Court judgment is implemented seamlessly.
Many states are also ready for the rollout of LG financial autonomy, with most having conducted council elections to meet the federal government’s main condition for accessing monthly allocations by the democratic leadership at the local government level.
Meanwhile, Katsina State local government elections is schedule to hold on 15 February 2025 to comply with this requirement, further paving the way for financial autonomy at the grassroots.