Amid efforts to enforce local government autonomy across Nigeria, federal allocations to Local Government Areas (LGAs) are set to bypass state governments and reach LG accounts directly by November, barring any last-minute pushback from state governors. This significant development, anticipated since the Supreme Court’s recent ruling, was confirmed by Hakeem Ambali, President of the National Union of Local Government Employees (NULGE), in an exclusive interview.
Ambali highlighted the union’s resolve to avoid any “loopholes” in implementing the policy, signalling both relief and readiness for a long-sought structural change. The change mandates that the federal government disburse funds directly to the LGAs, cutting out state governors who have long wielded authority over these funds.
The Economic and Financial Crimes Commission (EFCC) has confirmed it will closely monitor LGA expenditures, with EFCC Chairman Ola Olukoyede stating that anti-graft authorities will scrutinize council spending to ensure compliance. “Local governments having direct access to their funds may improve developmental activities at the third tier of government and reduce rural poverty,” Olukoyede said. The EFCC has already filed charges against former Taraba State governor Darius Ishaku over alleged misuse of local government funds, underscoring its heightened vigilance on council finances.
This shift to direct payments follows the Supreme Court’s landmark judgment on July 11, 2024, which declared state control over LGA funds unconstitutional. Led by Justice Garba Lawal, the court ruled that governors must no longer interfere with LGA allocations, a judgment that also mandated elections across 774 councils by October 31, 2024, in line with LG autonomy principles.
Though the ruling is slated for November implementation, officials noted that state governors had requested a three-month delay, which expires at the end of October. Ambali confirmed that the Ministry of Budget and National Planning has engaged stakeholders to ensure smooth enforcement, holding technical sessions last week to resolve lingering issues.
Still, some challenges remain. No fewer than 164 LGAs in eight states have yet to hold elections, which may result in federal allocation seizures. NULGE has urged the presidency to withhold allocations from states that fail to meet the autonomy requirements, and the Supreme Court affirmed that LGA chairmen who reassign funds to state coffers will be held accountable.
Amid mounting tensions, Daudu Clifford, NULGE’s Edo State President, confirmed the governors’ delay request but noted that LGAs are eager to exercise their autonomy. Similarly, Aminu Kaita, National President of the Association of Local Government of Nigeria (ALGON), stressed that “the direct disbursement from the Federation Account is progressing,” confirming that local councils expect unimpeded access to their allocations by November.
For councils long subject to state control, direct federal payments mark a pivotal moment. As funds flow directly to local government accounts, they are likely to face closer scrutiny than ever before. Yet, with the EFCC’s assurances of robust oversight, officials and residents alike are hopeful that the new autonomy will foster tangible local development while holding leaders accountable for public resources.
