The Office of the Accountant-General of the Federation (OAGF) has created a dedicated unit to oversee the direct disbursement of funds to Nigeria’s 774 local government areas (LGAs), marking a significant step towards implementing financial autonomy for the third tier of government. 

The initiative is set to commence fully in January 2025, following the Supreme Court’s judgment mandating direct revenue allocation to LGAs.

The Federation Account Allocation Committee (FAAC) will hold its first meeting of the year on Wednesday, with operational details of the direct allocation process as a primary agenda item. 

Sources within the OAGF have confirmed that necessary structures and processes are already in place to facilitate a smooth implementation.

“Our committee will reconvene later this month to review its progress and finalise measures before the accountant-General of the Federation (AGF) issues authorization for the complete rollout,” a source disclosed. Most LGAs are expected to start receiving their allocations by January.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, has approved the direct fund disbursement plan, further ensuring a seamless rollout.