Local governments across Nigeria face fresh obstacles in receiving direct monthly allocations, as the Central Bank of Nigeria (CBN) now requires each of the 774 councils to submit a two-year financial audit before opening dedicated accounts for them.
The direct disbursement, initially scheduled to begin last month, was postponed because many LGAs failed to provide the necessary financial records. Consequently, their ₦361.754 billion share of the ₦1.424 trillion revenue for the month was instead routed through state governments.
With the next Federation Account Allocation Committee (FAAC) meeting scheduled for February, concerns persist over whether LGAs can meet the audit requirement in time. A CBN official emphasized that many local councils have not functioned as independent entities, making a financial assessment crucial before granting autonomy over funds.
Meanwhile, an Inter-Ministerial Committee, led by the Secretary to the Government of the Federation (SGF), is drafting a framework to enforce the Supreme Court ruling on local government autonomy. This includes a proposal for the Accountant General of the Federation (AGF) to directly deduct funds for primary education, healthcare, and other constitutional responsibilities before transferring the remaining allocations to LGAs.
