LGAs to receive funds directly as CBN prepares accounts

The Association of Local Governments of Nigeria (ALGON) has announced that all 774 local government councils across the country will be required to establish dedicated accounts with the Central Bank of Nigeria (CBN). The move is aimed at ensuring the direct transfer of their allocations from the Federation Account, in compliance with a recent Supreme Court ruling.

Speaking on the development, Bello Lawal Yandaki, ALGON’s National President, stressed the importance of the initiative. He noted that opening the accounts would facilitate the implementation of the court’s decision regarding the direct disbursement of funds to local councils.

“The CBN is currently awaiting directives from the Federal Government to create these accounts for the respective states. This process can be completed within 24 to 48 hours for each state,” Yandaki stated.

He also revealed that he is a member of a sub-committee tasked with addressing unresolved issues surrounding the implementation. The committee has engaged with key stakeholders, including labour unions, local government chairmen, and the Nigeria Union of Local Government Employees (NULGE), to reach a consensus.

“There is a general agreement that direct federal revenue allocations to local governments will commence this January,” he added.

Yandaki further explained that while meetings and consultations are nearing completion, submissions are being prepared for the Federal Government to finalise the implementation process. However, no specific timeline has been set for its conclusion.

This initiative marks a significant step towards fiscal autonomy for local councils, ensuring funds reach them directly for developmental purposes.