Local Government Funds: Why Nigerians Still Cannot Track Council Allocations

Billions of naira are allocated to Nigeria’s local governments every month, yet many councils say they cannot repair rural roads, equip clinics or clear drainage. A major concern is the State Joint Local Government Account, where funds can be deducted before councils receive their balances. Some deductions, including teachers’ salaries, pensions and joint projects, may be legitimate. But residents are rarely given a clear record of what was deducted, why it was deducted and the services delivered. This makes it difficult to trace allocations from the Federation Account to each community. The Supreme Court ruled in July 2024 that allocations for democratically elected councils should go directly to them. Despite this, NULGE says many states still retain control over local-government funds. Direct allocation must come with transparency: verified council treasury accounts, monthly electronic payments, public budgets, contracts, audits and dashboards showing allocations, deductions, receipts and completed projects. Local-government autonomy should not create new centres of corruption. Every naira meant for grassroots development must be traceable from allocation to delivery.

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