The Federation Account Allocation Committee, FAAC has disbursed funds to the 36 States of the Federation including funds belonging to the Local Government Council Areas as the LGAs have failed to submit their account details for direct payment of the month of January, 2025.
The sum of N860.252 billion was released to the States, while N361.754 billion meant for the 774 Local Government Councils including the FCT Area Councils was released to the States.
It was gathered that the councils could not meet the deadline in submission of their account details and other administrative requirements.
A FAAC official explained that funds for the Councils will be disbursed through through their various states, while the Universal Basic Education Commission (UBEC) and Primary Health Centre (PHC) will receive direct funding from the Federation Account.
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.
