The Federal Government has restated its commitment to stop the prolonged diversion of funds meant for the 774 local government councils from the Federation Account.
The assurance was given on Thursday in Abuja by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Mohammed Shehu, at the 2025 budget performance review and 2026 budget defence session held by the House of Representatives Committee on Finance.
Shehu decried the continued intrusion of state governments into local council funds, noting that the commission was ready to implement decisive measures to secure financial independence for local governments.
“The commission would like to establish a Local Government Committee now, like we used to do before the Supreme Court said we were busy bodies. Now, we will monitor every single Local Government in Nigeria.
“I’m glad that Mr President spoke to the governors himself, that ‘if you don’t allow this (local government autonomy), I will issue an Executive Order.’ The Commission is fully in support of Mr President over this course.
“The crisis we are having in Nigeria today is the lack of functionality of local governments, and every single one of us knows this. Even under the military, the local governments were performing much better,” he said.
The RMAFC chairman further praised the House Committee on Finance, led by Lagos legislator Abiodun Faleke, saying its oversight and support had enhanced the commission’s credibility across major government agencies.
“I sincerely thank this committee for what you have done for RMAFC. You have brought us out. We are now being respected by almost all the revenue-generating agencies in Nigeria. Even before we knock now, they are knocking at our doors, having discussions with us, and some of the issues that have been over the years are being addressed by some of these revenue-generating agencies, whether it is the Nigerian Customs, Nigerian Upstream Petroleum Regulatory Commission, among others,” he added.
Speaking on the commission’s accomplishments with the committee’s backing, Shehu revealed that RMAFC had conducted a comprehensive audit of oil assets throughout the Niger Delta region.
He also told lawmakers that a new revenue allocation formula for the three tiers of government, as well as for political officeholders, was close to completion.
“Very soon, we will conclude. We have done everything. We are just about to finish analyzing the data and bring it before you.
“Remuneration of political office others is completed. We have submitted this through the Secretary to the Government of the Federation to the President. We hope that very soon, this will be transmitted to you so that it becomes a law. Of course, your own doesn’t require any legislation. It’s for ministers and others,” he said.
Following the presentation of the 2025 budget performance and the 2026 budget defence, Faleke, who chaired the session, lauded RMAFC’s management for its contributions to enhancing the nation’s revenue generation.
Interference in local government finances has long been a contentious issue within Nigeria’s federal system.
Although the 1999 Constitution recognizes local government administration, funds allocated to councils have frequently been diverted by state governors, often through mechanisms like the State–Local Government Joint Accounts.
