The 774 local governments in Nigeria are required to open dedicated accounts with the Central Bank of Nigeria (CBN) for the direct disbursement of funds from the Federation Account, according to the Association of Local Governments of Nigeria (ALGON).
National President ALGON Bello Lawal Yandaki emphasized that the account opening is essential to implementing the Supreme Court’s ruling on direct allocations to the councils. He added that the CBN is awaiting directives from the Federal Government before proceeding with the account openings.
Speaking with reporters in Katsina, Yandaki reassured that the delay in fund disbursement is not a cause for concern, attributing it to the councils’ failure to submit necessary bank details to the Federation Accounts and Allocations Committee (FAAC) for payment processing.
“The CBN is currently waiting for instructions from the Federal Government to open the local government accounts, which can be completed within 24 to 48 hours for each state,” Yandaki explained.
He also stated that he is part of a sub-committee addressing unresolved issues and that meetings have been held with relevant stakeholders, including labor unions and local government chairmen. There is a general consensus that the direct allocation of federal revenue to local governments will commence in January, although no specific timeline has been set.
In the January FAAC meeting, a total of N361.754 billion was allocated to the local governments, but the funds have not been distributed due to administrative hurdles. FAAC officials have urged the councils to resolve these issues by the end of the month to ensure the funds are released promptly.
The move to channel funds directly to local governments follows the Supreme Court’s ruling affirming their autonomy.
