FG Vows to End State Interference in Local Government Finances

The Federal Government has reiterated its commitment to ending the longstanding practice of state governments interfering with funds allocated to Nigeria’s 774 local councils. The announcement was made by Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) Chairman Mohammed Shehu during the 2025 budget appraisal and 2026 budget defence session held by the House of Representatives’ Committee on Finance in Abuja.

Shehu condemned states’ persistent encroachment on local government allocations and pledged that the commission would monitor all local governments to ensure financial autonomy. He highlighted President Bola Tinubu’s directive to governors to respect local government independence, emphasizing that executive measures could enforce compliance if necessary.

The RMAFC chairman also praised the House Committee on Finance for strengthening the commission’s role among key revenue-generating agencies. He disclosed 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.

Interference in local government finances has historically undermined governance, service delivery, and development at the grassroots. Though recognized under the 1999 Constitution, local government allocations are often withheld or redirected by state governors, compromising primary healthcare, education, and community development.

Recent Supreme Court rulings and renewed federal oversight signal a tougher stance on ensuring local government financial autonomy, aiming to strengthen governance at the grassroots.