Lagos LGs lead in six-year statutory allocations – Report
A recent review of statutory allocations to Local Governments across Nigeria from 2017 to 2023 revealed that LGs in Lagos State emerged as the top beneficiaries, with Alimosho Local Government Area receiving the highest allocation nationwide.
Data recently published by BudgIT, a social accountability firm that focuses on Nigeria’s budget, excluded allocations for the year 2021, focusing on the remaining five years within the period under view.
For the years between 2017 and 2023, Alimosho was allocated a total of N55.04bn, averaging N9.17bn annually.
This is closely followed by the Abuja Municipal Area Council in the Federal Capital Territory, which received N44.33bn with an average of N7.38bn per year.
Other Lagos LGs dominating the top tier include: Ajeromi/Ifelodun: Total allocation of N41.96bn (average of N6.99bn per year); Kosofe: 41.65bn (average N6.94bn); Oshodi: N40.99bn (average N6.83bn); Ojo:40.68bn (average N6.78bn); Mushin: N40.20bn (average N6.70bn).
Among the local governments with the least statutory allocations, Atakumosa East LGA in Osun State received the least statutory allocation, totalling N9.98bn, with an average of N1.66bn per year.
The Federal Account Allocation Committee distributed federal revenue to all 36 states and 774 local governments monthly to drive development and support governments in fulfilling their obligations.
Advocates argue that financial autonomy would empower local governments to manage resources more effectively, fostering development and reducing over-centralisation.
Speaking to journalists in Abuja recently how resources at the local governments areas can be effectively managed, an official of the Association of Local Governments in Nigeria Nuhu Salawu said, “The Supreme Court’s judgment has come, and we must find a way to address its impact. We want to provide solutions, not create problems.”
Salawu emphasised the need for local governments to have proper bookkeeping and accounting systems, manual audits, and domestic reports.
“They need to be independent and supported by financial institutions,” he added.
On his part, Yiaga Africa’s Executive Director, Samson Itodo, stated that the lack of tenure for local governments and councils is a major issue that needs to be addressed.
“Governments can leverage the gap in the law to dissolve local councils at will,” he noted. To address this, there is a debate on whether INEC should conduct local government elections.
However, strengthening state government institutions is seen as crucial.
A former Minister of Youths and Sports Mallam Bolaji Abdullahi expressed concerns over the Supreme Court’s ruling on local government autonomy, stating that it may have placed the most important level of education in the hands of the weakest tier of government.
“Lack of competence is a bigger problem than preventing theft,” Abdullahi said, highlighting the need to address capacity challenges at the local government level.
