Direct Federal Allocations to Local Governments: What to Expect by January – Insights from the Presidency

Upcoming Federal Allocations: How Local Governments Will Benefit by January – A Presidential Announcement

The Nigerian Presidency has announced that, starting from the end of January 2025, local governments across the country will receive their federal allocations directly from the Federal Allocation Account Committee (FAAC).

This development follows a Supreme Court ruling in July 2024, which declared that state control over local government funds is unconstitutional. The court mandated that local government allocations should be paid directly to the councils or through the states, with a preference for direct payments due to the inefficiency of state-controlled transfers.

Sunday Dare, the Special Adviser to the President on Media and Public Communications, confirmed that the necessary arrangements have been completed, allowing local governments to start receiving funds directly by the end of January. He emphasized President Bola Tinubu’s commitment to implementing the Supreme Court’s judgment on local government autonomy.