FG sets up special unit as implementation of LGAs financial autonomy begins

The Office of the Accountant-General of the Federation (OAGF) has established a dedicated unit to oversee the direct disbursement of funds to Nigeria’s 774 local government areas (LGAs). This move aligns with the planned implementation of financial autonomy for the third tier of government, set to commence this month.

The Federation Account Allocation Committee (FAAC) is scheduled to hold its first meeting of the year on Wednesday, during which operational details for direct fund allocations to LGAs are expected to be a key agenda item, as per The Nation.

Sources within the OAGF confirmed that necessary structures and processes have been put in place to ensure smooth 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,” an insider disclosed.
Read also: Local councils to receive direct FAAC allocations from January 2025

The inter-ministerial committee, established to enforce the Supreme Court judgment on direct revenue allocation to councils, has reportedly made significant progress.

Wale Edun, the finance minister and coordinating minister of the economy, has already approved the direct fund disbursement plan.

“There will 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,” the source added.

The committee will also address attempts by some state governors to undermine the autonomy of democratically elected LGA officials, including chairmen, deputies, and councilors.

Sources at the Federal Ministry of Justice confirmed that a presidential committee, led by George Akume, the secretary to the government of the federation, is working to ensure the Supreme Court judgment is implemented seamlessly.

Many states are also ready for the rollout of LG financial autonomy, with most having conducted council elections to meet the federal government’s main condition for accessing monthly allocations: democratic leadership at the local government level.

States like Lagos and Ondo are in the process of conducting their elections to comply with this requirement, further paving the way for financial autonomy at the grassroots.