Councils to get direct FAAC allocation pursuant to Supreme Court ruling
Councils will begin to get direct Federation Account Allocation Committee (FAAC) allocation from January 2025, pursuant to the Supreme Court judgment earlier this year which pronounced illegal the payment of council allocation to a joint state/council bank account and ordered direct payment to the third tier of government.
Sources in Abuja disclosed that the direct payment will begin with the disbursement of December 2024 funds from the federal purse kept at the centre.
The direct receipt from the FAAC will end the delay in the implementation of the July 11 judgment of the Supreme Court granting financial autonomy to councils, an implementation delayed by the Federal Governor to ensure minimal disruption to state/local government operations.
The umbilical cord of the state/local government joint account into which council allocations are paid has been difficult to break because of subtle resistance by Governors, many of whom are displeased with the Supreme Court judgment.
However, a member of the Inter-Ministerial Committee established to enforce the judgment confirmed to The Nation that approval has been given for the direct FAAC allocations to councils from next month after all the issues were resolved.
The source explained that some councils – which he did not name – have been collecting their allocation directly, the process will now be fully operational to benefits all the 774 councils
“A few LGAs have already started receiving their direct allocations but all of the 774 LGAs will fully start receiving their allocations from January 2025,” he said.
“Our committee will reconvene in January to review its progress and finalise measures before the Accountant-General of the Federation issues authorisation for the complete rollout.
“This is a critical juncture in Nigeria’s governance structure.
“Our January 2025 meeting will also address the actions of governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies, and councillors, ensuring they are not coerced into serving state interests.”
This move is a critical step in empowering councils to carry out their constitutional responsibilities effectively without undue interference by Governors.
The source expressed disappointment with the suspension for two months of democratically elected local government chairmen and deputies by the Edo State House of Assembly, following a petition by Governor Monday Okpebholo accusing them of insubordination for not making available their financial statements as directed.
“It is highly undemocratic for governors to dissolve elected LGAs.
“Such actions undermine the autonomy granted to local governments and create an environment where LGAs become pawns in the hands of state executives,” the source said.
The committee, chaired by Secretary to the Government of the Federation (SGF) George Akume has as members Coordinating Minister of the Economy Wale Edun, Attorney-General of the Federation and Minister of Justice Lateef Fagbemi (SAN), Minister of Budget and Economic Planning Abubakar Bagudu, Accountant General of the Federation Oluwatoyin Madein, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso, Revenue Mobilisation Allocation and Fiscal Commission Chairman Muhammed Shehu and representatives of Governors as well as local governments.
President Bola Tinubu threw his weight behind the financial independence of councils long before case when to the Supreme Court.
The inter-ministerial committee endorsed the implementation of constitutional provisions that recognise councils as the third tier of government.
Fagbemi had threatened to initiate contempt proceedings against Governors who failed to comply with the Supreme Court judgment.
Justifying councils’ financial autonomy, Fagbemi said: “Local government autonomy is meant to empower the grassroots, not enrich individuals.
“Any chairman found guilty of diverting funds will face severe legal consequences.”
Some states have laws seemingly aimed at bypassing the Supreme Court judgment.
The Anambra State House of Assembly, for instance, passed a Local Government Administration Bill mandating LGAs to remit a portion of their allocations into a state-controlled joint account.
Governor Chukwuma Soludo defended the legislation as necessary for transparency and collaboration, but critics, including civil society groups, accused his administration of undermining the spirit and letter of the Supreme Court judgment on financial autonomy for councils.
However,, the Nasarawa State House of Assembly aligned with the Supreme Court ruling by abolishing joint accounts and restructuring its local government system to ensure compliance.
Governor Abdullahi Sule signed the bill, thereby signalling support for grassroots financial independence.
As part of the Supreme Court ruling which mandates councils to be run by democratically elected officials before being qualified to access direct allocation from the Federation Account, all the states have conducted elections which ushered in elected Chairmen and Councillors.
The Senate also weighed in, urging full compliance with the Supreme Court judgment.
It advocated constitutional amendments to remove ambiguities in Section 162(6) of the Constitution which created state/local government joint accounts.
Senate President Godswill Akpabio emphasised the need for a clear framework to enforce local government autonomy effectively.
Former National President of the Association of Local Governments of Nigeria (ALGON) Aminu Maifata on Sunday advised council Chairmen on how to use direct allocations to them.
“I honestly expect them to work towards improving the lives of the people at the grassroots.
“I expect them to channel those resources towards implementing laudable programmes and projects as well as tackling challenges at the grassroots,” Maifata said.
He explained that ALGON already has a template on how council chairmen should judiciously use their FAAC allocations.
Maifata, former chairman of Lafia LGA of Nasarawa State, also enjoined chairmen to tackle insecurity, water shortage, and infrastructure gaps.
He said these are the basic needs of the rural population.
His words: “I don’t expect any chairman to have any difficulty in carrying out their constitutional responsibilities.
“I can authoritatively give you this assurance, and I honestly expect them to work towards improving the lives of the people at the grassroots.
“We already set the template when the Supreme Court judgment was delivered and each chairman knows what to do if the resources are available, so I expect them to follow the template we set and deliver good governance to our people at the grassroots.
“I also expect them to undertake capacity building of the legislative arm and the executive of various local governments across the country.
“I expect them to bring skillful resource persons that will speak on issues that will strengthen the local government administration.
“These are some of the key areas I expect them to start tackling immediately.”
– The Nation.
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