ALGON Reveals Why 774 Councils Have Yet to Receive FAAC Allocation

ALGON has disclosed the real reason behind the delay in FAAC allocations to Nigeria’s 774 local government councils, addressing widespread concerns over funding challenges.

According to the Association of Local Governments of Nigeria (ALGON), all 774 local governments in Nigeria will open dedicated accounts with the Central Bank of Nigeria (CBN) for receiving direct allocations from the Federation Account.

On Sunday, ALGON National President Bello Lawal Yandaki stressed the necessity of this action to enforce the Supreme Court’s decision requiring direct allocations to local councils. He underscored how crucial this initiative is for strengthening local government autonomy and enhancing grassroots development.

Furthermore, the Nigerian Financial Intelligence Unit (NFIU) will monitor how these funds are utilized by council chairmen to guarantee adherence to principles of transparency, accountability, and good governance.

According to a source, the direct disbursement plan aims to remove intermediaries and minimize mismanagement of public funds, enabling local governments to efficiently tackle developmental needs within their areas.

The Federal Government has assembled a team of anti-corruption agents from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC), according to the source. This team is tasked with prosecuting council chairmen and other officials involved in corrupt activities.

Yandaki, during a conversation with reporters in Katsina, the capital of Katsina State, reassured everyone about concerns regarding the delay in distributing funds to the councils.

He stated that there was no reason to worry and explained the delay by pointing out that councils had not submitted the necessary bank details to the Federation Accounts and Allocations Committee (FAAC), which are essential for processing the payments.

He stated, “The CBN is currently waiting for instructions from the Federal Government to open local government accounts for each state, a process that can be completed within 24 to 48 hours per account.”

I am part of the sub-committee established to address contentious grey areas. We have already met with key stakeholders, such as labor unions, local government chairpersons, NULGE, and others.

It is widely agreed that direct federal revenue allocations to local governments will begin this January.

“We hope to be finalizing meetings and submitting proposals to the Federal Government for implementation, but there isn’t a specific timeline in place yet.”

A source who attended the FAAC meeting over the weekend mentioned, “The structures have not yet been erected. The local government areas need to be coordinated.”

He mentioned that the central bank is awaiting instructions from the Federal Government regarding the opening of the accounts.

“The delay occurred because individuals who opened accounts with the CBN did not submit their details to FAAC for crediting.”

At the FAAC meeting in January, an allocation of N361.754 billion was made to the LGAs.

Nevertheless, these administrative bottlenecks have prevented the distribution of the funds.

FAAC officials have encouraged the councils to address these issues by the end of the month to guarantee they receive their allocations.

The Federal Government’s choice to allocate funds directly to the local government came after the Supreme Court affirmed the councils’ autonomy.