By Alexis Uchendu
Local governments across Nigeria are facing fresh hurdles in accessing direct monthly allocations, as the Central Bank of Nigeria (CBN), now mandates each of the 774 councils to submit a two-year financial audit before dedicated accounts can be opened for them.
The planned direct disbursement, initially set to commence last month, was delayed after many Local Government Areas (LGAs), failed to provide the required financial records.
As a result, their ₦361.754 billion share of the ₦1.424 trillion federal revenue for the month was redirected through state governments.
With the next Federation Account Allocation Committee (FAAC), meeting approaching in February, concerns remain over whether LGAs can meet the audit requirement in time.
A CBN official noted that many councils have not operated independently for years, making a financial assessment crucial before granting them full control over their allocations.
Meanwhile, an Inter-Ministerial Committee, led by the Secretary to the Government of the Federation (SGF), is developing a framework to implement the Supreme Court ruling on local government autonomy.
The proposal includes a plan for the Accountant General of the Federation (AGF) to directly deduct funds for primary education, healthcare, and other essential services before transferring the remaining allocations to LGAs.
