WHY WE PAID JANUARY. LG ALLOCATION TO GOVS- FAAC

The Federation Account Allocation Committee (FAAC) disbursed N860.252 billion for January. 

Of this amount, N498.498 billion went to state governments, while N361.754 billion was meant for local governments.

 However, local government funds were sent to state accounts because councils failed to submit their account details to the Central Bank of Nigeria (CBN) on time. 

A FAAC official stated, “The January allocation didn’t go directly to local governments but to their state accounts because they didn’t submit their details on time.”

The official added, “If they start submitting their accounts now, their February allocations will go to them directly. This will mark the start of their autonomy as planned by the Bola Tinubu administration.” Specific funds, such as those for the Universal Basic Education Commission (UBEC) and Primary Health Centres (PHCs), were disbursed directly to ensure essential services were maintained.

Efforts to achieve local government financial independence are ongoing. An inter-ministerial committee, led by Senator George Akume, is developing a framework for transparency in council fund usage.

 Another FAAC official explained, “They have obligations like funding primary schools and healthcare, which must be deducted and sent to the relevant agencies.” 

Delays were attributed to procedural issues, but the Federal Government is committed to implementing the Supreme Court’s 2024 ruling granting financial autonomy to local governments.

Bello Lawal Yandaki, president of the Association of Local Governments of Nigeria (ALGON), reassured stakeholders that delays were temporary. 

“The CBN is ready to open local government accounts within 24 to 48 hours once directives are given,” he said. He emphasized that once the accounts are active and details submitted, disbursement will proceed without issues. 

“The process is moving in the right direction."Yandaki stated.

SOURCE: NATION