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Bagudu

The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, has urged local governments across Nigeria to demonstrate the impact of their monthly allocations from the Federation Account by investing in projects that promote development and improve living conditions in their communities.

Bagudu said local governments must move beyond the traditional practice of distributing funds received from the Federation Account and embrace their responsibilities as drivers of grassroots economic development.

The minister made the call on Thursday in Abuja at the ninth annual national conference of the Association of Local Government Vice Chairmen of Nigeria (ALGOVC).

He described local governments as critical institutions for identifying economic opportunities, mobilising local resources and creating conditions for sustainable development at the community level.

According to him, treating local government administration primarily as a channel for distributing funds represents a major weakness in grassroots governance.

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“Local government is not just an administrative centre that should disburse money coming from the Federation Account. That is a big error that we have been making in the past,” he said.

Bagudu’s remarks place renewed attention on the responsibilities of local government authorities following changes in the country’s fiscal arrangements and increased attention to financial autonomy at the grassroots level.

With local governments receiving statutory allocations from the Federation Account, expectations have continued to grow regarding their capacity to deliver basic infrastructure and essential services to residents.

The minister’s position suggests that improved financial resources must be accompanied by stronger planning, accountability and development-oriented expenditure.

Local governments are strategically positioned to identify the specific needs of their communities, particularly in areas such as primary healthcare, basic education, rural roads, sanitation, water supply and local economic development.

They can also support agricultural production, small businesses and community-based enterprises by investing in infrastructure and creating an enabling environment for economic activities.

However, translating increased allocations into measurable development will require effective budgeting, transparent procurement processes and proper monitoring of public projects.

Local government officials will also need to establish development priorities based on the economic realities and needs of their respective communities rather than concentrating expenditure on recurrent administrative costs.

Bagudu’s intervention reinforces the growing debate over how local governments can maximise their financial resources to improve service delivery and stimulate economic activities at the grassroots.

The conference provides an opportunity for local government vice chairmen and other stakeholders to examine governance challenges and identify practical approaches to strengthening development across Nigeria’s 774 local government areas.

The Traffic NG
Senator Abubakar Bagudu
Amarachi Ihesiulo

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.

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