LGA FUND DISTRIBUTION AUTONOMY



A committed group has been created within the Office of the Accountant-General of the Federation (AGF) to supervise the direct allocation of funds to the 774 local government areas (LGAs) across the country. This initiative signifies the introduction of financial autonomy for the third tier of government, which is set to commence this month. 


The Federation Account Allocation Committee (FAAC) will convene for its initial meeting of the year on Wednesday, focusing primarily on the operational specifics related to the direct fund distribution to LGAs. "Most of the 774 LGAs are anticipated to begin receiving their full allocations starting January 2025," an official disclosed. The committee is set to reconvene later this month to assess progress and finalize strategies prior to obtaining authorization from the AGF for comprehensive implementation. 


"There is no challenge in executing the minister's directive to initiate disbursements to the LGAs; however, the process remains routine for ministry officials, who already manage similar allocations for states," the source remarked. "A dedicated department is accountable for this and the essential infrastructure is already established."


Furthermore, the Inter-Ministerial Committee is tackling actions (taken by certain governors) that are aimed at undermining the autonomy of democratically elected LGA chairpersons, deputies and councilors. However, this situation raises concerns, because it can jeopardize the integrity of local governance. Although there are various factors at play, the committee is focused on ensuring that elected officials retain their necessary independence.

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