FG Reaffirms Commitment to Local Government Financial Autonomy

The Federal Government has reiterated its determination to end state interference in the finances of Nigeria’s 774 local councils. Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman Mohammed Shehu made the statement during a 2025 budget appraisal and 2026 budget defence session convened by the House Committee on Finance in Abuja.

Shehu criticized the ongoing practice of state governments diverting local government allocations and vowed that the commission would monitor all councils to ensure full financial autonomy. He also highlighted President Bola Tinubu’s warning to governors, stressing that executive action could be taken if local government independence is undermined.

The RMAFC chairman noted that the commission had audited oil assets across the Niger Delta and is finalizing a new revenue allocation formula for all tiers of government and political office holders.

Historically, local government allocations in Nigeria have often been controlled by state governments, reducing service delivery, healthcare, education, and infrastructure outcomes at the grassroots level. Recent Supreme Court rulings and federal pressure aim to reverse this trend, reinforcing financial independence for councils nationwide.