FAAC: LG Allocations Rises By 111.81% to N2.5trn in Six Months

The Federation Account Allocation Committee (FAAC) disbursed a total of N2.5 trillion to 774 local government areas (LGAs) and 36 states in Nigeria in the first half of 2025, marking a significant 111.81% increase compared to the corresponding period in the previous year. The highest allocation was recorded in June, with LGAs receiving a total of N387 billion.

The Electronic Money Transfer Levy (EMTL) also saw a substantial increase, rising to N3 billion in June 2025. The expansion of the EMTL to include fintech companies has contributed to this growth, with the levy being imposed on electronic transfers and receipts of money.

Despite the increase in FAAC allocations, local governments are still struggling to gain autonomy and access their funds without interference from state governments, despite a Supreme Court decision granting financial autonomy to LGAs. This lack of implementation has left many local governments facing financial challenges and hindered their ability to effectively manage resources.