𝗚𝗼𝗼𝗱𝗻𝗲𝘄𝘀: 𝗔𝗹𝗹 774 𝗟𝗚𝗔𝘀 𝗦𝗲𝘁 𝗙𝗼𝗿 𝗗𝗶𝗿𝗲𝗰𝘁 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻𝘀.

𝗕𝗬 𝗡𝗜𝗚𝗘𝗥𝗗𝗘𝗟𝗧𝗔 𝗩𝗢𝗜𝗖𝗘,
𝗡𝗶𝗴𝗲𝗿 𝗗𝗲𝗹𝘁𝗮, 𝗡𝗶𝗴𝗲𝗿𝗶𝗮.

All 774 Local Government Areas (LGAs) across Nigeria are now set to begin receiving direct allocations from the Federation Account following the completion of dedicated account openings with the Central Bank of Nigeria (CBN).

The development marks a major step in the implementation of local government financial autonomy, in line with the Supreme Court judgment delivered on July 11, 2024, which granted financial independence to local councils and barred the use of state-controlled joint accounts for allocation disbursement.

Under the new arrangement, each local government council is required to operate a dedicated account with the CBN and comply fully with Know Your Customer (KYC) and other regulatory requirements before receiving funds directly from the Federation Account.

Reports indicate that all councils nationwide have now completed the account opening and documentation processes, clearing a major hurdle for the commencement of direct allocation payments.

The Association of Local Governments of Nigeria (ALGON) had earlier directed council chairmen across the country to ensure timely registration and completion of account opening procedures at various CBN branches to avoid delays in accessing federal allocations.

The implementation process had previously faced setbacks due to documentation issues, verification procedures, and coordination challenges among relevant agencies, despite some states already recording pilot or partial disbursements.

Civil society organisations, including the Socio-Economic Rights and Accountability Project (SERAP), have continued to demand transparency in the management and utilisation of the funds, urging authorities to ensure accountability at the grassroots level.

Meanwhile, regulatory and anti-corruption agencies such as the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) are expected to monitor the process closely to prevent diversion and misuse of public resources.

The direct allocation policy is widely regarded as one of the most significant reforms in Nigeria’s local government administration in recent decades, with many stakeholders expressing optimism that it could improve grassroots development and strengthen governance at the local level if effectively implemented.

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