The federal and state governments have expressed readiness to commence direct disbursement of funds to all 774 local governments across the country as financial autonomy for local government takes effect this month.
Dedicated unit opens in Accountant-General’s office for disbursements
A dedicated unit is now in place in the Office of the Accountant General of the Federation (OAGF) to handle direct disbursement of funds to the 774 local governments across the country as the planned financial autonomy for the third tier of government takes effect this month.
The first meeting of the Federation Account Allocation Committee (FAAC) for this year has been scheduled for Wednesday with operational details for direct fund allocations to the LGs expected to feature prominently, The Nation gathered yesterday.
Sources at the OAGF said the necessary structures and processes for the new dispensation were ready to ensure a seamless implementation.
“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,” one of the sources said of the assignment of the Inter-Ministerial Committee set up to enforce the Supreme Court judgment on direct allocation of revenue to the councils.
The source said the Finance Minister and Coordinating Minister of the Economy Wale Edun had earlier given approval for the direct fund allocation.
The source said there should 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.”
“A whole department is in charge of it, so it’s not going to be a challenge. The structure has been on the ground. I can confirm that,” the source added.
It was also gathered that the Inter-Ministerial Committee would also “address the actions of some governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies and councilors.”
Sources at the Federal Ministry of Justice said separately that the committee set up by President Bola Tinubu to implement the Supreme Court judgment was working round the clock to deliver on its assignment.
The committee is headed by the Secretary to the Government of the Federation, Chief George Akume.
One of the sources said: “The essence of the LG financial autonomy is to ensure grassroots development and not to impose a burden on governors.
“This necessitated the setting up of the committee chaired by the SGF to ensure smooth and charismatic implementation.”
Most of the states are also ready for the take-off of the LG financial autonomy, having taken steps or in the process of meeting the main condition stipulated by the federal government for their councils to be eligible for the monthly allocation from the federation account: running of the LGs by democratically elected chairmen and councilors.
Thus, council elections have been conducted in many of the states while Lagos and Ondo are about holding theirs.
Adamawa State Information and Strategy Commissioner James Iliya told The Nation in Yola that the state government was on the same page with the federal authorities on the issue of financial autonomy for the LGs.
“We are with the Federal Government over this local council autonomy and we have always been,” he said, describing the councils in the state as some of the freest in the country.
He added: “Our local governments have long been free. Local council autonomy in Adamawa State came before the autonomy worked out at the federal level rather recently.”
Delta State Finance Commissioner Fidelis Tilije said the state government was not opposed to the Supreme Court’s decision as the state has a tradition of allowing the LGs to control their allocations.
He said in addition to that, the state government has been giving subvention to the 25 councils since 2015 and 10 per cent of its internally generated revenue.
His words: “Delta State under ex-Gov Okowa in 2015 gave grants to local councils of N300 million monthly, which was increased to N500 million to enable them pay salaries in 2020 and meet other assignments required of them.
“At any point in time, we have never bothered about the revenue going to that tier of government.
