FG Establishes Unit for Direct Fund Disbursement to LGAs, Financial Autonomy Begins
The Federal Government has established a dedicated unit within the Office of the Accountant General of the Federation (OAGF) to facilitate direct disbursement of funds to the 774 local government areas (LGAs) nationwide. This development marks the implementation of financial autonomy for the third tier of government, set to take effect this month.
The Federation Account Allocation Committee (FAAC) is scheduled to hold its first meeting of the year on Wednesday, with discussions expected to focus on operational details for the direct allocation of funds to LGAs, sources disclosed yesterday.
An official at the OAGF confirmed that the necessary structures and processes for the new system are in place to ensure seamless implementation. “Most of the 774 LGAs will begin receiving their allocations fully from January 2025,” the source revealed.
The Inter-Ministerial Committee tasked with enforcing the Supreme Court judgment on direct revenue allocation to LGAs will reconvene later this month to assess progress and finalize measures before the Accountant-General of the Federation authorizes a complete rollout.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, has already approved the plan. “There won’t be any challenge in implementing the directive as the structures and personnel required are already in place,” another source stated.
The committee will also address concerns over attempts by some state governors to undermine the autonomy of elected LGA officials, including chairmen, deputies, and councilors. The move is expected to strengthen the independence of local governments and enhance service delivery at the grassroots level.
