According to news reports, administrative lapses have thrown spanners into the planned first direct revenue allocation to the 774 local governments from the federation account.
The LGAs have a total of N361.754 billion as their share of distributable revenue from the N1.424 trillion due to the three tiers of government this month.
The Federal Government had planned to commence direct payment of the LGs’ revenue allocation into their accounts from this month, but at the just concluded January 2025 Federation Account Allocation Committee (FAAC) meeting in Abuja, it was confirmed that the councils had failed to submit the necessary bank account details required to facilitate the direct payments.
“The structures are yet to be erected,” a source familiar with the development said yesterday, referring to the absence of accounts specifically opened with the Central Bank of Nigeria (CBN) for this purpose. The LGAs have to be coordinated. Those who have opened accounts with the CBN did not submit their details to FAAC for crediting, resulting in the delay.
If this information is not ready, they will not be paid. But if they produce it, they will be paid.” Another source suggested that political interference and delays in conducting local government elections in some states may have also contributed to the development.
