The local government areas in the country are set to begin receiving direct financial allocations from the Federation Account.
To this end, Association of Local Government of Nigeria, ALGON, has directed all council chairmen across the country to immediately proceed to the Central Bank of Nigeria, CBN, branch close to them to complete all outstanding documentation and procedures.
ALGON explained, “This is sesequel to the operationalisation of the local government account into which the monthly revenue allocation from the Federation Account accruing to local governments will be paid to give full effect to the intents of the Supreme Court judgment.”
The directive, sighted by reporters in Abuja, Thursday, was in a written correspondence to the chairmen and dated March 5,2025, signed by the ALGON acting Director General, Mrs. Evan Enekwe.
The letter read: “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.
“However, for local government accounts opened by CBN to become effective and operational, certain due process and protocols has to be completed between individual councils and the CBN, including ‘KYC’ diligence by the bank.
“Consequently, every local government chairman is hereby requested to visit the nearest CBN branch to the council to complete all outstanding documentation and procedures sequel to the operationalisation of the local government account into which the monthly revenue allocation from the Federation Account accruing to local governments will be paid to give full effect to the intents of the Supreme Court judgment.
“Your immediate compliance is advised; please accept the regards of ALGON National President, Engr. Bello Lawal.”
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