Local Governments Struggle Despite N5.5 Trillion Allocation

In 2025, Nigeria's 774 local governments received a total allocation of N5.5 trillion from the Federation Account Allocation Committee (FAAC), which is 48.6% higher than the N3.7 trillion disbursed in 2024. However, despite this significant financial injection, poverty remains deeply entrenched at the grassroots level.

Analysts, including Awal Musa Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), argue that state governors maintain a tight grip on local government finances, undermining the financial autonomy granted by a Supreme Court ruling in 2024. Investigations reveal that basic social services, such as primary healthcare, quality education, and access to potable water, are grossly inadequate.

The lack of fiscal transparency and weak governance structures further exacerbate the situation, raising questions about the effective use of public funds. Rafsanjani emphasizes that without institutional reforms and genuine financial autonomy, the allocation of N5.5 trillion will not translate into tangible development outcomes.