The Federal Government has restated its determination to stop state governments from interfering with funds meant for the country’s 774 local government areas.
This assurance was given on Thursday in Abuja by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, during the 2025 budget performance review and 2026 budget defence before the House of Representatives Committee on Finance.
Shehu expressed concern over the continued control of local government allocations by states, noting that the practice has weakened governance at the grassroots. He said the commission plans to revive a monitoring structure that will closely track how funds are managed by local councils nationwide.
According to him, the President has already engaged state governors on the issue and is ready to take decisive action to ensure local government autonomy. He stressed that the non-functionality of many local councils has contributed significantly to Nigeria’s development challenges.
The RMAFC chairman praised the House Committee on Finance, led by Abiodun Faleke, for its support, saying the commission now enjoys improved cooperation from revenue-generating agencies across the country.
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Shehu also disclosed that the commission had audited oil assets in the Niger Delta and was close to completing work on a new revenue-sharing formula for the three tiers of government. He added that a review of remuneration for political office holders has been concluded and forwarded to the President for further action.
After the session, Faleke commended RMAFC’s management for its efforts in strengthening revenue generation and financial accountability.
Interference in local government finances has remained a major issue in Nigeria’s federal structure, largely due to the operation of joint state-local government accounts. Critics argue that this system has hampered grassroots development, affecting basic services such as healthcare, education, and infrastructure.
With recent court rulings and renewed federal attention, the Federal Government has signalled a firmer approach to ensuring financial independence for local governments.
