Local governments across Nigeria are on the brink of receiving direct financial allocations from the Federation Account, marking a major step toward financial autonomy.
In light of this development, the Association of Local Governments of Nigeria (ALGON) has issued a directive to all 774 local government chairmen, instructing them to visit the nearest Central Bank of Nigeria (CBN) branch to complete the necessary documentation for their accounts.
This move follows the Supreme Court ruling of July 11, 2024, which granted full financial autonomy to local government councils. In a letter dated March 5, 2025, and signed by ALGON’s Acting Director General, Mrs. Evan Enekwe, chairmen were urged to comply immediately to ensure a smooth transition of funds into their newly established CBN accounts.
The letter emphasized that while the accounts have been created, they remain inactive until each local government completes its Know Your Customer (KYC) process and other procedural requirements with the CBN.
ALGON National President, Engr. Bello Lawal, reinforced the urgency of the matter, urging swift compliance to ensure seamless direct funding to local governments.
This breakthrough signifies a new era for grassroots governance, empowering local councils with financial independence to drive community development and service delivery without state government interference.
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