Why FG Is Yet to Begin Direct Allocation to LGs

The Federal Government has not started making direct allocations to Local Government Areas (LGAs) due to ongoing administrative steps.

This was revealed by Hon. Odunayo Alegbere, Chairman of the Board of Trustees of the Association of Local Governments of Nigeria (ALGON), during a recent briefing in Abuja.

According to him, local governments have been instructed to open accounts with the Central Bank of Nigeria (CBN) to facilitate smooth implementation of the direct allocation plan.

Alegbere explained that the initiative aligns with the Supreme Court’s judgment granting financial independence to LGAs, which also includes administrative and political autonomy.

He noted that although the process is still underway, the Federal Government has made progress toward fully implementing the court’s directive.

The ALGON chairman said that once direct allocation begins, local governments will gain more control over their finances, which could reduce poverty at the grassroots.

He described the current system, where state governments conduct local elections, as flawed, stating that it is more like appointing candidates than holding actual elections.

Alegbere expressed confidence that constitutional amendments being worked on by the National Assembly will address this issue.

He also pointed out that the current weaknesses in the local government system contribute to Nigeria’s insecurity.

Alegbere suggested that traditional institutions should be included in the local governance structure to play a role in tackling security problems.

He stressed that a functional local government system is vital for resolving Nigeria’s security challenges.

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One response to “Why FG Is Yet to Begin Direct Allocation to LGs”

  1. Oluniyi Oshoba Avatar
    Oluniyi Oshoba

    Good direction to national progress and prosperity

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