By Onyeanya Ebere Immaculata
The Federal Government has reaffirmed its resolve to end state governments’ interference in funds allocated to the 774 local government areas from the Federation Account, signalling possible executive action to enforce financial autonomy at the grassroots.
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, stated this on Thursday in Abuja while presenting the commission’s 2025 budget performance and defending its 2026 proposal before the House of Representatives Committee on Finance.
Shehu said RMAFC plans to re-establish a Local Government Committee to monitor council finances nationwide, adding that President Bola Tinubu has warned governors against continued interference.
He said the commission supports the President’s position, including the option of issuing an Executive Order to guarantee local government autonomy.
According to Shehu, the weakening of local government administration has contributed significantly to Nigeria’s governance challenges, blaming the decline on state encroachment on funds meant for grassroots development.
He also told lawmakers that RMAFC had audited oil assets in the Niger Delta and was close to finalising a new revenue allocation formula for the three tiers of government.
He added that the commission had completed work on the remuneration of political office holders and submitted it to the President through the Secretary to the Government of the Federation.
Chairman of the House Committee on Finance, Abiodun Faleke, commended RMAFC for its role in strengthening revenue oversight.
Interference in local government finances has remained a major issue in Nigeria’s federal system, largely due to the State-Local Government Joint Accounts, which critics say have weakened service delivery and rural development.
