Local government areas across Nigeria are set to begin receiving direct financial allocations from the Federation Account, following the implementation of the Supreme Court’s judgment granting financial autonomy to councils.
In a directive issued to all council chairmen, the Association of Local Governments of Nigeria (ALGON) has instructed them to immediately proceed to the nearest Central Bank of Nigeria (CBN) branch to complete outstanding documentation and procedures necessary for the activation of their accounts.
According to ALGON, this move ensures that monthly revenue allocations from the Federation Account will now be paid directly into newly opened local government accounts at the CBN.
The directive, contained in a letter dated March 5, 2025, and signed by ALGON’s Acting Director General, Mrs. Evan Enekwe, emphasized the need for council chairmen to comply promptly.
“In compliance with the Supreme Court judgment of July 11, 2025, which granted financial autonomy to local government councils, I am directed to inform you that the CBN has graciously opened accounts for the 774 local governments and area councils in Nigeria,” the letter stated.
However, ALGON noted that for these accounts to become fully operational, each council must complete due process requirements, including the bank’s Know Your Customer (KYC) diligence.
Council chairmen have been urged to ensure immediate compliance to facilitate the smooth transfer of funds and implementation of local government financial autonomy.