Investigations: LGs Remain Underdeveloped Despite N5.5trn FAAC Funds in 2025
Naija News • Feb 21
**Nigeria's Local Governments: Still Struggling Despite N5.5trn Allocation**
In a country where the gap between the haves and have-nots seems to be widening, Nigeria's 774 local governments (LGs) continue to grapple with underdevelopment despite a significant allocation of N5.5 trillion from the Federation Account Allocation Committee (FAAC) in 2025. This staggering amount, a 48.6 percent increase from the N3.7 trillion allocated in 2024, has done little to alleviate the suffering of millions of Nigerians at the grassroots level.
One major reason for this underdevelopment is the continued grip of state governors over LG finances. Despite a 2024 Supreme Court judgement that granted financial autonomy to local councils, governors still maintain significant control over their funds. This has led to LGs being used as mere cash conduits rather than engines of development, stifling innovation and progress at the local level.
A breakdown of the FAAC allocation shows that LGs received substantial funds in 2025, with a total of N5.5 trillion disbursed across the 12 months. However, a closer look at the figures reveals that these funds have not translated into tangible development projects or improved living standards for many Nigerians. In fact, basic social services such as healthcare, education, and water remain grossly inadequate in many rural communities.
Investigations across several local councils and rural communities reveal a stark reality. Residents continue to rely on dilapidated facilities and informal support systems, with little evidence of improved living standards or development projects. This is a stark reminder that increased fiscal transfers have not necessarily translated into meaningful development outcomes.
Experts argue that weak governance structures, poor fiscal transparency, and limited administrative capacity at the local level are major obstacles to effective utilisation of public funds. Civil society leaders, such as Awal Musa Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), contend that the autonomy granted by the Supreme Court remains largely theoretical, with governors allegedly continuing to control local government finances and political structures.
For meaningful development to occur at the grassroots level, more needs to be done to ensure that resources are effectively utilised and that governance structures are strengthened. Until then, Nigeria's LGs will continue to struggle with underdevelopment, leaving millions of Nigerians to suffer in silence.