AGF Office Establishes Team for Direct Fund Distribution to Local Governments

AGF Office Establishes Team for Direct Fund Distribution to Local Governments

A dedicated team has been established within the Office of the Accountant-General of the Federation (AGF) to oversee the direct distribution of funds to the 774 local governments across Nigeria.

 This initiative marks a significant step towards achieving financial autonomy for the third tier of government, set to commence this month.

The Federation Account Allocation Committee (FAAC) is scheduled to meet on Wednesday for its first gathering of the year, where key operational details regarding the direct fund distributions will be a primary focus. The majority of the local governments are expected to start receiving their allocations from January 2025.

A source involved in the process stated, “Our committee will reconvene later this month to review its progress and finalize measures before the AGF issues authorization for the complete rollout.” 

The source also reassured that there are no anticipated challenges in executing the approval from the Minister for disbursements to the local governments, noting that ministry officials routinely manage similar processes for states. 

Furthermore, an Inter-Ministerial Committee will address concerns regarding certain governors who are perceived to be undermining the autonomy of democratically elected local government officials, including chairmen, their deputies, and councilors.