The Federal Government has restated its determination to put an end to the long-standing interference by state governments in funds allocated to the 774 local government areas from the Federation Account.
The pledge was made in Abuja by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, during the 2025 budget performance appraisal and the 2026 budget defence organised by the House of Representatives Committee on Finance.
Shehu decried what he described as persistent encroachment by state governments on local government finances, noting that the practice had continued to undermine grassroots governance and development across the country. He said the commission was ready to take concrete steps to ensure full financial autonomy for local councils, in line with constitutional provisions.
According to him, safeguarding direct access to funds for local governments remains critical to strengthening service delivery and accelerating development at the grassroots level.
The RMAFC chairman also praised the House Committee on Finance, chaired by the member representing Ikeja Federal Constituency, Abiodun Faleke, for its consistent support and oversight. He said the committee’s guidance had enhanced the commission’s credibility and standing among key government institutions.
Speaking on the commission’s recent achievements, Shehu disclosed that RMAFC had conducted an audit of oil assets across the Niger Delta region as part of efforts to improve revenue transparency and accountability.
He further informed lawmakers that work on a new revenue allocation formula for the three tiers of government was nearing completion. According to him, the commission was also finalising proposals on remuneration packages for political office holders.
Shehu expressed optimism that the ongoing reforms, with the backing of the National Assembly, would strengthen fiscal governance and promote equitable resource distribution across all levels of government.