Huge FAAC allocations to LGAs spark nationwide calls for accountability

DDM News

(DDM) – Fresh concerns are growing across Nigeria over how Local Government Areas (LGAs) are spending their monthly allocations from the Federation Account Allocation Committee (FAAC), following revelations of massive disbursements with little visible development on the ground.

Data sourced from BudgIT’s public dashboard for June 2025 shows that in Imo State, used here as a sample, no LGA received less than ₦319 million for the month.

Oru East recorded the lowest allocation at ₦319,909,677.45, while Mbaitoli received the highest at ₦529,087,916.07.

Other allocations in the state include Aboh Mbaise (₦476,096,253.19), Ohaji Egbema (₦479,915,255.01), Isiala Mbano (₦488,911,476.02), Ideato North (₦453,165,340.27), and Owerri North (₦453,623,229.08).

The FAAC, a federal body, distributes monthly revenue from the Federation Account to federal, state, and local governments.

These funds are meant to finance grassroots development, pay workers’ salaries, and maintain essential public services such as roads, schools, and healthcare centres.

DDM gathered that in many LGAs across Nigeria, residents continue to complain about a lack of visible progress despite the enormous inflows.

Roads remain dilapidated, health centres under-equipped, and public schools in poor condition, raising questions about how these funds are being spent.

The problem, according to analysts, is not unique to Imo State.

Across the country, LGAs often operate without strong accountability measures, with many failing to publish detailed budgets or project reports. This lack of transparency fuels suspicions of mismanagement and diversion of funds.

Nationwide, civil society groups have repeatedly urged anti-graft agencies to investigate the use of LGA allocations, stressing that local governments are constitutionally mandated to serve as the tier of government closest to the people.

In theory, FAAC allocations should be complemented by internally generated revenue (IGR).

However, most LGAs rely almost entirely on federal transfers, meaning any mismanagement directly impacts local communities.

The June 2025 FAAC figures for Imo State have become a talking point, with citizens and advocacy groups demanding similar audits across all 774 LGAs in Nigeria.

Calls are growing for public disclosure of LGA expenditure, open contracting processes, and active civic monitoring to ensure funds deliver tangible results.

Observers warn that without urgent reforms, LGAs will continue to receive billions monthly while many Nigerian communities remain trapped in underdevelopment.

The Imo example, they say, is a mirror of what is happening nationwide, a reminder that transparency at the grassroots is no longer optional but essential.

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