Why FG Hasn’t Started Direct Allocation to Local Governments

By Achimi Muktar

Despite the Supreme Court’s ruling on financial autonomy for Local Government Areas (LGAs), the Federal Government has yet to commence direct allocations to them. However, according to the Association of Local Governments of Nigeria (ALGON), the delay is due to ongoing processes and preparations.

Hon. Odunayo Alegbere, Chairman of ALGON’s Board of Trustees, revealed that LGAs have been instructed to open accounts with the Central Bank of Nigeria (CBN) to facilitate direct allocation. However, the process is still ongoing, preventing immediate implementation.

“We are happy with the president, and I’m proud of the fact that we have not gotten to where we want to go, but we are making steady progress,” Alegbere stated.

How Direct Allocation Will Change Nigeria

✅ Eradicating Poverty – More funds for grassroots development.
✅ Free and Fair Elections – Ending state government control over LGA elections.
✅ Improved Security – Strengthening local governance to combat insecurity.
✅ Stronger Traditional Institutions – Involving local leaders in governance.

Poverty Eradication at the Grassroots

Alegbere emphasized that direct allocation will help stamp out poverty, as LGAs will have full control over their finances and projects.

“If you look at the grassroots level, abject poverty is tremendous, but with this new arrangement, we are sure that we will erase and stamp out poverty at the grassroots level,” he said.

Fixing the Broken Local Government Election System

Alegbere criticized the current system where state governments conduct local government elections, often manipulating the process in favor of ruling parties.

“We are working towards ensuring that the State Independent Electoral Commission (SIEC) is removed from the constitution, and a national body is established to conduct local government elections,” he said.

This move, he believes, will ensure free and fair elections at the local level.

The Link Between Insecurity and Weak Local Governments

Nigeria’s insecurity crisis, according to Alegbere, is directly linked to the failure of the local government system. He suggested that the Federal Government should incorporate traditional institutions into local governance, allowing them to play an active role in tackling security challenges.

“Unless and until we go back and look at the older system, it will be very difficult to address [insecurity],” he warned.

Rivers State Crisis: Tinubu’s Intervention Praised

On the political crisis in Rivers State, Alegbere commended President Bola Ahmed Tinubu for declaring a state of emergency, stating that it prevented a civil war.

Who is ALGON’s Real Secretary-General?

Addressing claims by a factional group over the ALGON Secretary-General position, Alegbere warned that anyone claiming the position outside the official structure is an impostor.

What’s Next for Local Governments?

Alegbere expressed confidence that the Federal Government will soon complete the process of implementing direct allocation, ensuring financial independence for LGAs.

“We want to assure Mr. President that we are going to continue to cooperate with him because he has actually demonstrated leadership by ensuring that the local government system is made functional at this time,” he added.

Final Thoughts: Will This Be a Turning Point for Nigeria?

With financial autonomy, local governments could finally deliver on their promises to citizens. But will the Federal Government follow through on its commitment?