Mirian Gom 
Nigeria House of Representatives
ABUJA, Nigeria – The Federal Government signals a tougher stance against state interference in funds allocated to Nigeria’s 774 local government councils, pledging full enforcement of financial autonomy.
Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Shehu, made the declaration on Thursday during a budget appraisal session with the House of Representatives Committee on Finance.
Shehu says persistent diversion of local government allocations has crippled grassroots governance and service delivery.
“The crisis Nigeria faces today is rooted in non-functional local governments,” he says, adding that councils performed better even under military rule.
He confirms plans to revive a Local Government Monitoring Committee to oversee fund utilisation nationwide, noting President Tinubu’s warning to governors that an Executive Order may be issued if autonomy is obstructed.
Shehu commends the House Committee on Finance for strengthening RMAFC’s authority, revealing that revenue-generating agencies now engage more transparently with the commission.
He also discloses that RMAFC has completed audits of oil assets in the Niger Delta and is finalising a new revenue allocation formula for all tiers of government.
“Work on political office holders’ remuneration is complete and awaiting transmission to the National Assembly,” he says.
Committee Chairman Abiodun Faleke praises the commission’s reforms, describing them as critical to improving national revenue performance.
Interference in local government finances has long plagued Nigeria’s federal system, with joint state–local accounts often used to divert funds, weakening rural healthcare, education and infrastructure.
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