ALL LGAs SET TO RECEIVE DIRECT FEDERATION ACCOUNT FUNDING AS CBN ACCOUNT OPENING IS COMPLETED NATIONWIDE
All 774 Local Government Areas (LGAs) in Nigeria are now set to begin receiving direct allocations from the Federation Account following the completion of dedicated account openings with the Central Bank of Nigeria (CBN), marking a major milestone in the implementation of local government financial autonomy.
This development means that all LGAs have now met a key requirement for the commencement of direct funding, paving the way for the Federal Government to begin disbursing statutory allocations directly to local councils, in line with the Supreme Court judgment of July 11, 2024, which affirmed financial autonomy for local governments and prohibited the use of state-controlled joint accounts.
Under the new arrangement, each LGA is required to maintain a dedicated account with the CBN, alongside full compliance with Know Your Customer (KYC) and other regulatory documentation. With these conditions now reportedly fulfilled across all councils, the system is expected to transition into full implementation phase.
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The Association of Local Governments of Nigeria (ALGON) had earlier urged council chairmen nationwide to complete account registration processes at CBN branches to avoid delays in accessing monthly allocations. The completion of this process now represents a critical administrative breakthrough in the rollout of the autonomy framework.
Although the policy has now reached a key operational stage, full implementation is expected to remain closely monitored. Some states had previously experienced partial or pilot disbursements, while nationwide rollout was slowed by verification processes, documentation gaps, and inter-agency coordination challenges.
Civil society organisations, including the Socio-Economic Rights and Accountability Project (SERAP), have continued to call for transparency in the implementation process, particularly regarding the exact amounts received and how effectively local governments will manage and deploy the funds for grassroots development.
Regulatory and anti-corruption agencies such as the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) are also expected to maintain oversight to reduce risks of mismanagement and diversion of public funds.
The move, under the current administration, is being described as one of the most significant reforms in Nigeria’s subnational fiscal structure in decades, with the potential to reshape grassroots governance if properly implemented and sustained.
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(DEMOCRACY NEWSLINE NEWSPAPER, MAY 26TH 2026)
