The local government administration of the 774 LGAs and their areas councils in a historic development are now ready to receive direct financial disbursement from the Federation Account following the financial autonomy as amended by the Apex Court of the land.
This development is courtesy of the Association of Local Governments of Nigeria (ALGON), which has directed all democratically elected council bosses across Nigeria to go to the nearest Central Bank of Nigeria (CBN) branch to complete all necessary documents for the activation of the designated accounts.
The decision was necessary following the implementation of a new Local Government account system which ensures a seamless monthly revenue allocation and disbursement from the Federation Account will be paid directly into these chosen accounts for efficient management of the funds and effectively reducing interference from the State Governments.
The report of the directive was available to reporters in Abuja on March 5 2025, through the Acting Director of ALGON, Mrs. Evan Enekwe, who confirmed that CBN had open accounts for all the LGAs in Nigeria in compliance with the Apex Court Judgment of July 11, 2025, which grants full financial autonomy to LGAs.
To promote this new normal, and ensure a smooth and strict adherence and operation of these accounts, ALGON emphasized the need for Council Chiefs to fulfill all “Know Your Customers (KYC) obligations and other necessary requirements established by the Central Bank of Nigeria (CBN).
The directive was signed by the ALGON National President, Engr. Bello Lawal, and stressed the urgency of the directive for immediate compliance by those concerned.
“Every Local Government Chairman is hereby requested to visit the nearest CBN branch to their council to complete all outstanding documentation and procedures. This step is essential for the full operationalization of the Local Government accounts, ensuring the monthly revenue allocations from the Federation Account are received as mandated by the Supreme Court Judgment”, Bello said.
This directive signals a crucial paradigm in the local government governance system making an end to the years of proxy financial management and naked control of the Local Government funds by State governments.
If this judgment is strictly adhered to, the Renewed Hope Agenda of Mr. President, Bola Ahmed Tinubu GCFR, will touch the lives of the citizenry at the grassroots hence directly funding LGAs in the country from the Federation Account would make more funds available to the chairman to fund the developmental project in their respective councils and areas.
It will also give LGA bosses greater access and financial independence in the management of their resources, to executive more projects that suit the people, improving service delivery, and grassroots political participation.
As the debate continues, analysts have hailed the financial amendment as they believe that the move would not only encourage accountability but improve our nascent democracy, ensuring that funds meant for communities for projects are used in the most transparent and judicious manners, unlike when the governors are in control of the funds and give them peanuts.
As Nigerians expect the direct disbursement from the Federation Account to the designated accounts of the 774 LGAs, all eyes are fixed on the council chairman to what they make out with the funds.
