The local government areas in the country are scheduled to begin receiving direct budgetary allocations from the Federation Account.
To this end, Association of Local Government of Nigeria, ALGON, has instructed all council chairmen across the country to immediately proceed to the Central Bank of Nigeria, CBN, branch close to them to finish any outstanding documents 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 came in a written letter to the chairmen dated March 5, 2025, signed by Mrs. Evan Enekwe, the acting director general of ALGON, and was seen by Vanguard in Abuja yesterday.
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.”