In a groundbreaking move towards financial autonomy for the third tier of government, the Office of the Accountant-General of the Federation (AGF) has established a dedicated team to oversee the direct distribution of funds to all 774 local government areas (LGAs) in Nigeria. This initiative is set to take effect this month, signaling a new era of fiscal independence for local governments across the country.
The first Federation Account Allocation Committee (FAAC) meeting of the year, scheduled for Wednesday, is expected to center on the operational modalities for the direct allocation of funds to LGAs. This development is in line with ongoing efforts to strengthen grassroots governance and ensure financial transparency at the local level.
According to a reliable source, the direct fund disbursement process will commence fully in January 2025 for most LGAs. “Our committee will reconvene later this month to assess the progress made so far and finalize the measures necessary for the Accountant-General of the Federation to authorize the complete rollout,” the source revealed.
The source also expressed confidence in the seamless execution of the initiative, emphasizing the existing infrastructure within the ministry to handle such tasks. “There won’t be any challenges in implementing the Minister’s approval to start the disbursements to LGAs. A whole department is already in place for this purpose, so the structure has been on the ground. I can confirm that,” the source added.
In addition, the Inter-Ministerial Committee is reportedly addressing attempts by some state governors to undermine the independence of democratically elected local government chairmen, deputies, and councilors. This proactive measure underscores the federal government’s commitment to safeguarding the autonomy of LGAs and ensuring they are empowered to deliver impactful governance.
This initiative is expected to promote equitable resource distribution and enhance service delivery at the grassroots level, reaffirming the federal government’s commitment to strengthening democratic governance across all tiers.
