- •774 Local Governments to receive N361b
Administrative lapses have thrown spanners into the planned first direct revenue allocation to the 774 local governments from the federation account, The Nation gathered last night.
The LGs have a total of N361.754 billion as their share of distributable revenue from the N1.424 trillion due to the three tiers of government this month.
The Federal Government had planned to commence direct payment of the LGs’ revenue allocation into their accounts from this month, but at the just concluded January 2025 Federation Account Allocation Committee(FAAC) meeting in Abuja, it was confirmed that the councils had failed to submit the necessary bank account details required to facilitate the direct payments.
“The structures are yet to be erected,” a source familiar with the development said yesterday, referring to the absence of accounts specifically opened with the Central Bank of Nigeria (CBN) for this purpose.
“The LGAs have to be coordinated. Those that have opened accounts with the CBN did not submit their details to FAAC for crediting, resulting in the delay.
“If this information is not ready, they will not be paid. But if they produce it, they will be paid.”
Another source suggested that political interference and delay in conducting local government elections in some states may have also contributed to the development.
“The LGAs may have been handicapped by the maneuvering of state governments and the ongoing elections to elect local government officials recognised by law to spend the money,” the source noted.
The Nation gathered that FAAC officials expect the LGs to resolve the administrative bottlenecks by the end of the month to enable them receive their allocations.
Following the July 2024 ruling of the Supreme Court granting the LGAs financial autonomy, the Federal Government directed the councils to open accounts with the CBN for the purpose of receiving their monthly allocation from the federation account. (The Nation)
