The Federal Government of Nigeria, through the Office of the Accountant-General of the Federation (OAGF), has set up a dedicated unit to oversee the implementation of financial autonomy for the nation’s 774 local government areas (LGAs). This initiative follows the Supreme Court judgment mandating direct revenue allocation to LGAs and aims to enhance grassroots governance. The Federation Account Allocation Committee (FAAC) will address operational details for direct fund disbursements during its first 2025 meeting, with full implementation expected this month.
The Finance Minister, Wale Edun, has approved the disbursement plan, while an inter-ministerial committee ensures compliance with the autonomy framework. Efforts are also underway to tackle interference by state governors in LGA governance. States that have conducted council elections are set to receive monthly allocations directly, as democratic leadership at the local government level remains a key federal requirement.
Some states, including Lagos and Ondo, are finalizing their electoral processes to align with this policy. A presidential committee led by George Akume, Secretary to the Government of the Federation, is working to ensure seamless implementation. This historic shift is expected to strengthen local governance, with the OAGF promising robust measures to manage the disbursements effectively.