FG sets up dedicated unit in the Office of the Accountant General of the Federation (OAGF) to handle direct disbursement of funds to the 774 local governments across the country as the planned financial autonomy for the third tier of government takes effect this month.
The first meeting of the Federation Account Allocation Committee (FAAC) for this year has been scheduled for Wednesday with operational details for direct fund allocations to the LGs expected to feature prominently, The Nation gathered yesterday.
Sources at the OAGF said the necessary structures and processes for the new dispensation were ready to ensure a seamless implementation.
“Most of the 774 LGAs will fully start receiving their allocations from January 2025.
“Our committee will reconvene later this month to review its progress and finalise measures before the Accountant-General of the Federation (AGF) issues authorisation for the complete rollout,” one of the sources said of the assignment of the Inter-Ministerial Committee set up to enforce the Supreme Court judgment on direct allocation of revenue to the councils.
The source said the Finance Minister and Coordinating Minister of the Economy Wale Edun had earlier given approval for the direct fund allocation.
The source said there should be no “challenge to carry out the approval from the Minister to start making the disbursements to the LGAs. There won’t be a challenge because it’s something they (ministry officials) do day in day out for the states.”
“A whole department is in charge of it, so it’s not going to be a challenge. The structure has been on the ground. I can confirm that,” the source added.
It was also gathered that the Inter-Ministerial Committee would also “address the actions of some governors attempting to undermine the autonomy of democratically elected LGA chairmen, deputies and councilors.”
