Direct Transfer to Local Government Councils Fails as FG Disburses January Allocation to States

The federal government through the Federation Account Allocation Committee (FAAC) has released N860.252 billion to state governments for January, with the local governments expected to get N361.754 billion of the allocated sum

The councils will not receive their allocations directly due to their inability to meet the deadline for submitting account details.

According to an FAAC official, the councils’ January funds will be disbursed through the states, while the Universal Basic Education Commission (UBEC) and Primary Health Centre (PHC) will receive direct funding from the Federation Account.

The FAAC official explained that the commission transferred the January allocations to state governments because the councils failed to meet the administrative requirements for funds disbursement.

 

He said: “The January allocation did not go to the local governments but to their state accounts.

“If they have started submitting their accounts, their February allocations will go to them.

“The January allocation has been paid to the state accounts already. That means they didn’t submit their details on time.

“If the councils can move fast and tidy up the loose ends early, they will get their funds directly from next month.

“That will signal the commencement of their autonomy as desired by the Bola Tinubu administration.’’

’I learnt the process of creating accounts is what is holding the process, but the Federal Government is determined to make sure that local government autonomy becomes a reality. I can assure you that things are moving in the right direction,’’ another FAAC official said.

The development comes after the Supreme Court granted financial autonomy to local government councils in July 2024, ruling that their funds from the Federation Account should be paid directly to them rather than through state governments.

To implement the judgment, the Federal Government directed all local governments to open dedicated bank accounts with the Central Bank of Nigeria (CBN) for the direct transfer of their monthly allocations.

However, it is understood that the process has been slowed down by the ongoing budget defence and other pressing engagements involving key government officials.