The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has reaffirmed the Federal Government’s commitment to empowering local government institutions as a key pillar of inclusive economic growth. Speaking at a high-level policy dialogue hosted by AGORA Policy with support from the MacArthur Foundation, the Minister noted that grassroots empowerment is central to President Bola Ahmed Tinubu’s poverty reduction strategy. He emphasised that strengthening local governance is not just a governance concern but an urgent economic necessity.
Mr Edun referenced the Federal Government’s recent compliance with the Supreme Court’s landmark ruling on local government autonomy. He clarified that henceforth, only democratically elected local councils will receive direct allocations from the Federation Account. According to the Minister, this is not a discretionary decision but a constitutional obligation that reflects the administration’s commitment to the rule of law and democratic principles at the grassroots.
To give effect to this reform, the Federal Government has launched targeted initiatives aimed at boosting local capacity and service delivery. These include the Nutrition 774 Programme, Project 774 Digital Connectivity, and the HOPE Programme supported by the World Bank. Each of these is designed to enhance human capital development, improve digital access, and strengthen delivery mechanisms in local communities, which are critical foundations for achieving sustainable and inclusive growth across the nation.
Mr Edun concluded by stressing that these are not symbolic moves but concrete investments in governance that inspire private sector confidence, reduce economic exclusion, and lay the groundwork for scalable national development. He called for deeper coordination among federal, state, and local governments, stressing that only through collective effort and policy discipline can the full benefits of local government reform be realised.