The Federal Government has not commenced direct allocation to Local Government Areas (LGAs) due to ongoing processes.

According to Hon. Odunayo Alegbere, Chairman of the ALGON Board of Trustees, local governments have been instructed to open accounts with the Central Bank of Nigeria (CBN) for seamless implementation of direct allocation.

Although the process is not yet complete, Alegbere commended the Federal government for the progress made so far, citing the Supreme Court’s judgment on financial autonomy for local governments.

He said the Federal government is working towards implementing this judgment, which includes administrative and political autonomy for LGAs.

Alegbere assured that direct allocation will help stamp out poverty at the grassroots level, as local governments will have more control over their finances and projects.

He decried the current system, where states conduct local government elections, in which it is often more of a selection process than a true election and assured that the challenge would be soon be addressed with ongoing constitution amendment by the National Assembly.

“We are happy with the president, and I’m proud of the fact that we have not gotten to where we want to go, but we are making steady progress,” Alegbere said.

Eradicating Poverty
Alegbere emphasized that direct allocation will help stamp out poverty at the grassroots level, as local governments will have more control over their finances and projects.

“If you look at the grassroots level, abject poverty is tremendous, but with this new arrangement, we are sure that we will erase and stamp out poverty at the grassroots level,” he said.



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