Abuja, April 22, 2025 — The Association of Local Governments of Nigeria (ALGON) has called for a constitutional amendment to the law establishing the Federation Account Allocation Committee (FAAC), demanding representation of local government chairmen in discussions about revenue distribution among Nigeria’s three tiers of government.

ALGON’s Secretary-General, Muhammed Abubakar, made the appeal in an interview, stating that local governments are currently excluded from crucial decision-making processes regarding the allocation of federal resources, despite being constitutionally recognized as the third tier of government.

“We have FAAC where money is being discussed. Fine, we are saying that local government chairmen also have the right to be represented in that body,” Abubakar said.

He emphasized that while state governors and commissioners of finance have agreed with ALGON’s position on allowing local governments to open commercial bank accounts for direct receipt of federal allocations, they remain opposed to granting LGs a seat at the FAAC negotiation table.

“Governors and commissioners say the Act that created FAAC doesn’t provide for LGs at the table. But it’s an Act—it can be amended,” he added.

This advocacy comes amid ongoing delays in the implementation of the Supreme Court’s July 2024 ruling, which mandated that local government allocations be paid directly to councils, bypassing state intermediaries. The decision followed a legal action filed by the Attorney-General of the Federation, Lateef Fagbemi (SAN), seeking full fiscal autonomy for Nigeria’s 774 local governments.

The apex court ruled that continued diversion of LG funds by states violates the constitution, declaring that local councils should receive their funds directly from the Federation Account.

Despite this, direct disbursement is yet to begin, reportedly due to stringent preconditions set by the Central Bank of Nigeria (CBN). The apex bank has insisted that each local government must submit two years’ worth of audited financial statements before accounts can be opened for direct transfers.

ALGON argues that these bureaucratic obstacles are further delaying local government autonomy and undermining the spirit of the Supreme Court judgment.

“The justice of this matter demands that LG allocations from the Federation Account should henceforth be paid directly to the LGs,” Abubakar reiterated.

He called on the National Assembly to amend the relevant provisions of the FAAC Act, enabling local government representation and empowering councils to manage their resources transparently and independently.

The debate over local government autonomy continues to generate national discourse, with stakeholders split over the best path forward. While reform advocates see decentralization as essential for grassroots development, others warn of potential abuse without proper oversight mechanisms.