Local governments are the closest tier of government to the people, responsible for delivering essential services, infrastructure, and economic development at the grassroots level.
However, for decades, they have struggled with financial dependence on state governments, which has hindered their ability to function effectively.
In a historic move, the Federal Government of Nigeria has passed a law granting financial autonomy to local governments. This is a significant step toward strengthening governance and ensuring that local administrations can fulfill their mandate without undue interference.
However, the responsibility now lies with state governments to ensure full implementation of this law for the benefit of the people.
Financial autonomy means that local governments will now receive their funds directly from the Federation Account, rather than through state governments.
This will:
Ensure Timely Execution of Projects – With direct access to their funds, local governments can now plan and implement projects without delays caused by state-level bureaucracy.
Enhance Service Delivery – More resources will be available for healthcare, education, road construction, water supply, and other essential services.
Boost Economic Growth – With financial independence, local governments can invest in job creation, support small businesses, and improve local economies.
Strengthen Accountability – Since funds will go directly to local governments, citizens can better monitor how their resources are used, reducing corruption and mismanagement.
Improve Security – Adequate funding will enable local governments to support community policing and security initiatives to tackle crime and maintain peace.
While the federal government has done its part by passing the financial autonomy law, the success of this reform depends on the willingness of state governments to comply. Unfortunately, some state governments have resisted this change, as they previously controlled local government funds and often diverted them for other purposes.
State governments must recognize that implementing this law is in the best interest of the people. Rather than seeing local government autonomy as a loss of power, they should embrace it as an opportunity to foster grassroots development.
Governors should lead by example by ensuring that:
Local government funds are released promptly and in full.
Political interference in local government administration is minimized.
Mechanisms for transparency and accountability are strengthened.
Citizens are actively involved in monitoring how local funds are spent.
The passage of this law marks a new era in Nigeria’s governance. Now, the focus should be on ensuring its full and effective implementation.
I urge all state governments to prioritize the enforcement of financial autonomy for local governments. This is not just a legal obligation—it is a moral duty to the millions of Nigerians who rely on local government services.
The people must also stay vigilant. Civil society organizations, community leaders, and the general public must monitor their local governments and demand accountability.
A financially autonomous local government is only as good as the leadership that manages it.
Financial autonomy for local governments is a game-changer for grassroots development.
The federal government has taken the right step, but true success lies in implementation at the state level. State governments must act in the interest of the people by ensuring that local governments receive and utilize their funds effectively.
This is a defining moment for Nigeria’s democracy. If properly implemented, financial autonomy will lead to stronger local governance, improved service delivery, and a better quality of life for all Nigerians. Let us all work together to make this a reality.
Hon. Anderson Kelechi Akaliro, Member Representing Umuahia North (Ohuhu) State Constituency in Abia State House of Assembly
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