A dedicated unit has been established in the Office of the Accountant General of the Federation (OAGF) to oversee direct disbursement of funds to the 774 local governments, marking the start of the financial autonomy for local governments this month.
The Federation Account Allocation Committee (FAAC) will hold its first meeting of the year on Wednesday, where details about the direct fund allocations to the LGAs will be discussed. Sources from the OAGF confirmed that the necessary processes are in place for a smooth rollout, with most of the local governments expected to begin receiving their allocations from January 2025. The implementation will be reviewed later this month, and full authorization will follow.
The Ministry of Finance has already approved the direct allocation process, with officials confident that the structure is prepared to handle the disbursements smoothly. Additionally, the Inter-Ministerial Committee set up to enforce the Supreme Court ruling will also address actions by governors seeking to undermine the autonomy of local government officials.
Most states have taken steps to meet the federal conditions for their LGAs to receive funds, primarily ensuring that councils are run by democratically elected officials. The Supreme Court's ruling in July 2024 confirmed the financial autonomy of local governments, declaring it unconstitutional for governors to withhold these funds.
Despite the ruling, governors expressed concerns about a sudden shift to financial autonomy, fearing it could create problems for councils. In response, the federal government warned that states failing to hold local government elections would be denied revenue allocations, prompting most states to conduct elections.
