Policy breakdown and Implication of NFIU guidelines on Local government fund

Guidelines to Reduce Vulnerabilities Created by Cash Withdrawals from Local Government Funds throughout Nigeria (Initiated by The Nigeria Financial Intelligence Unit, NFIU)

Policy Details

LG allocations paid into the SJLGA should go straight into the respective Local council bank accounts

Local government allocation or fund cannot be withdrawn until it is paid into Local government bank account

LGs are limited to N500,000 cash transactions daily

Expenses or transactions beyond N500,000 must be undertaken using e-transfers and cheques

Totake effect on June1, 2019


The Policy favours LGs financial Autonomy

The policy bar banks, financial institutions, public officers and other stakeholders from tampering with local government statutory allocations.

Sates particularly would no longer be able to tamper with LG funds

The policy restores LGs as third tier of government

The policy restores full mandate of the operations of State/Local Government Joint Accounts to be used solely for the distribution of funds directly to the accounts of the local governments not for withdrawals and payment as currently being done by state governors



Section 162: (6) Each State shall maintain a special account to be called “State Joint Local Government Account” into which shall be paid all allocations to the Local Government Councils of the State from the Federation Account and from the Government of the State.

(8) The amount standing to the credit of Local Government Councils of a State shall be distributed among the Local Government Councils of that State on such terms and in such manner as may be prescribed by the House of Assembly of the State.


  1. My partner and I stumbled over here different web page and thought I may as well
    check things out. I like what I see so i am just following you.
    Look forward to looking at your web page for a second time.

  2. Very nice post. I just stumbled upon your blog and wished to
    say that I have truly enjoyed browsing your blog posts. In any case
    I’ll be subscribing to your rss feed and I hope you write again soon!


Please enter your comment!
Please enter your name here