Between July and December 2024, the Federation Accounts Allocation Committee (FAAC) disbursed a total of ₦2.08 trillion to Local Government Councils across Nigeria. This period followed a Supreme Court ruling in July 2024 that granted full financial autonomy to the country’s 774 Local Government Areas, directing that funds be paid directly into their accounts to ensure proper utilization.
Despite this landmark judgment, the allocations continued to be routed through state government accounts, causing frustration among the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE). They expressed concerns over the delay in implementing the court’s directive, which was intended to enhance local governance and financial independence.
Finance Minister Wale Edun acknowledged the delay, citing “practical impediments” to the direct disbursement of funds to local governments. He mentioned that a committee had been established to assess the feasibility of the Supreme Court’s ruling, indicating ongoing challenges in its implementation.
An analysis of FAAC communiqués over the six-month period revealed the following monthly allocations to Local Government Councils:
July 2024: ₦337.019 billion
August 2024: ₦343.703 billion
September 2024: ₦306.533 billion
October 2024: ₦329.864 billion
November 2024: ₦355.621 billion
December 2024: ₦402.553 billion
These figures highlight fluctuations in monthly allocations, with December recording the highest disbursement. The continued channeling of funds through state governments, contrary to the Supreme Court’s directive, remains a contentious issue, with local government officials advocating for the immediate implementation of financial autonomy to enhance grassroots development and governance.
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