Local Government Areas across Nigeria are set to start receiving direct financial allocations from the Federation Account.
In line with this, the Association of Local Governments of Nigeria has instructed all council chairmen to immediately visit the nearest Central Bank of Nigeria branch to complete the necessary documentation and procedures.
ALGON explained that this move is part of the operationalization of the local government accounts, into which the monthly revenue allocations from the Federation Account will be paid, fulfilling the provisions of the Supreme Court judgment.
A letter dated March 5, 2025, signed by ALGON’s Acting Director General, Mrs. Evan Enekwe, and sighted by Vanguard in Abuja, outlined the directive. It stated, “This is 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.”
The letter also referenced the Supreme Court’s July 11, 2025, ruling, which granted financial autonomy to local government councils. In line with the judgment, the CBN has opened accounts for all 774 local governments and area councils across Nigeria. However, for these accounts to become fully operational, certain processes, including Know Your Customer diligence, must be completed by each council with the CBN.
The letter urged council chairmen to visit the nearest CBN branch to ensure the completion of all outstanding documentation. “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,” it read.
ALGON emphasized the need for immediate compliance with the directive, adding, “Your immediate compliance is advised; please accept the regards of ALGON National President, Engr. Bello Lawal.”
