Direct Payment Of Allocation To Councils Begins January 2025

Barring any last-minute change of plan, councils will begin to get direct allocation from the Federation Account next month.

It will begin with the disbursement of this month’s allocation to the tiers of government, a source told our correspondent at the weekend.

The direct receipt from the Federation Account Allocation Committee (FAAC) will end the delay in the implementation of the July 11 judgment of the Supreme Court granting financial autonomy to councils.

Since the judgment was delivered, the Federal Government has been making an effort to ensure minimal disruption to state/local government operations.

The umbilical cord of the state/local government joint account into which council allocations are paid has been difficult to break because of subtle resistance by governors, many of who are displeased with the Supreme Court judgment.

A member of the Inter-Ministerial Committee established to enforce the Supreme Court judgment told our correspondent that approval has been given for the direct FAAC allocations to LGAs from next month after all the issues were laid to rest.

The source explained that though some councils have been collecting their allocation directly, the process will be fully operational by next month.

The committee member declined a request to name the councils that have been receiving direct allocations.

The source said: “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.

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

“This is a critical juncture in Nigeria’s governance structure.

“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.”

This move is believed to be a critical step in empowering councils to carry out their constitutional responsibilities effectively without undue interference by governors.

The source expressed disappointment with the suspension for two months of democratically elected local government chairmen and deputies by the Edo State House of Assembly, following a petition by Governor Monday Okpebholo accusing them of insubordination for not making available their financial statements as directed.

“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 said.

The committee, chaired by Secretary to the Government of the Federation (SGF) George Akume has as members Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation and Minister of Justice Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant General of the Federation Oluwatoyin Madein, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu and representatives of state governors as well as local governments.

President Bola Ahmed Tinubu threw his weight behind the financial independence of councils.

The inter-ministerial committee endorsed the implementation of constitutional provisions that recognise councils as the third tier of government.

Fagbemi had threatened to initiate contempt proceedings against defiant governors who failed to comply with the July 11 Supreme Court judgment.

Justifying councils’ financial autonomy, Fagbemi said: “Local government autonomy is meant to empower the grassroots, not enrich individuals.

“Any chairman found guilty of diverting funds will face severe legal consequences.”

Some states have laws seemingly aimed at bypassing the Supreme Court judgment.

The Anambra State House of Assembly, for instance, passed a Local Government Administration Bill mandating LGAs to remit a portion of their allocations into a state-controlled joint account.

Governor Chukwuma Soludo defended the legislation as necessary for transparency and collaboration, but critics, including civil society groups, accused his administration of undermining the spirit and letters of the Supreme Court judgment on financial autonomy for councils.

On the other hand, the Nasarawa State House of Assembly aligned with the Supreme Court ruling by abolishing joint accounts and restructuring its local government system to ensure compliance.

Governor Abdullahi Sule signed the bill, thereby signalling support for grassroots financial independence.

As part of the Supreme Court judgment which mandates councils to be run by democratically elected officials before being qualified to access direct allocation from the Federation Account, all the states have conducted elections which ushered in elected chairmen and councillors.

The Senate also weighed in, urging full compliance with the Supreme Court judgment.

It advocated constitutional amendments to remove ambiguities in Section 162(6) of the 1999 Constitution, which created state/local government joint accounts.

Senate President Godswill Akpabio emphasised the need for a clear framework to enforce local government autonomy effectively.

Immediate past National President of the Association of Local Governments of Nigeria (ALGON) Aminu Muazu Maifata yesterday advised council chairmen on how to use direct allocations to them.

‘’I honestly expect them to work towards improving the lives of the people at the grassroots.

“I expect them to channel those resources towards implementing laudable programmes and projects as well as tackling challenges at the grassroots,” Maifata said.

He explained that ALGON already has a template on how council chairmen should judiciously use their FAAC allocations.

Maifata, a one-time chairman of Lafia LGA of Nasarawa State, also enjoined chairmen to tackle insecurity, water shortage, and infrastructure gaps.

He explained that these are the basic needs of the rural population.

The former ALGON boss said: “I don’t expect any chairman to have any difficulty in carrying out their constitutional responsibilities.

“I can authoritatively give you this assurance, and I honestly expect them to work towards improving the lives of the people at the grassroots.

“We already set the template when the Supreme Court judgment was delivered and each chairman knows what to do if the resources are available, so I expect them to follow the template we set and deliver good governance to our people at the grassroots.”

“I also expect them to undertake capacity building of the legislative arm and the executive of various local governments across the country.

“I expect them to bring skillful resource persons that will speak on issues that will strengthen the local government administration.

“These are some of the key areas I expect them to start tackling immediately.”