Foreclosing any last-minute change of plan, councils will begin to get direct allocation from the Federation Account next month.
It will begin with the disbursement of this month’s allocation to the tiers of government, a source told our correspondent at the weekend.
The direct receipt from the Federation Account Allocation Committee (FAAC) will end the delay in the implementation of the July 11 judgment of the Supreme Court granting financial autonomy to councils.
Since the judgment was delivered, the Federal Government has been making an effort to ensure minimal disruption to state/local government operations.
The umbilical cord of the state/local government joint account into which council allocations are paid has been difficult to break because of subtle resistance by governors, many of who are displeased with the Supreme Court judgment.
A member of the Inter-Ministerial Committee established to enforce the Supreme Court judgment told our correspondent that approval has been given for the direct FAAC allocations to LGAs from next month after all the issues were laid to rest.
The source explained that though some councils have been collecting their allocation directly, the process will be fully operational by next month.
The committee member declined a request to name the councils that have been receiving direct allocations.
The source said: “A few LGAs have already started receiving their direct allocations but all of the 774 LGAs will fully start receiving their allocations from January 2025.
Our committee will reconvene in January to review its progress and finalise measures before the Accountant-General of the Federation issues authorisation for the complete rollout.
“This is a critical juncture in Nigeria’s governance structure.
“Our January 2025 meeting will also address the actions of governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies, and councillors, ensuring they are not coerced into serving state interests.
This move is believed to be a critical step in empowering councils to carry out their constitutional responsibilities effectively without undue interference by governors.
The source expressed disappointment with the suspension for two months of democratically elected local government chairmen and deputies by the Edo State House of Assembly, following a petition by Governor Monday Okpebholo accusing them of insubordination for not making available their financial statements as directed.
Such actions undermine the autonomy granted to local governments and create an environment where LGAs become pawns in the hands of state executives,” the source said.
The committee, chaired by Secretary to the Government of the Federation (SGF) George Akume has as members Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation and Minister of Justice Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant General of the Federation Oluwatoyin Madein, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu and representatives of state governors as well as local governments.
President Bola Ahmed Tinubu threw his weight behind the financial independence of councils.