The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, has urged local governments to justify their monthly allocations from the Federation Account by using the funds to drive development in their communities.
He spoke on Thursday in Abuja at the 9th annual national conference of the Association of Local Government Vice Chairmen of Nigeria, ALGOVC.
The minister said local governments should serve as centres for identifying and developing the economic potential of their communities rather than merely distributing funds received from the Federation Account.
“Local government is not just an administrative centre that should disburse money coming from the Federation Account. That is a big error that we have been making in the past,” he said.
Bagudu explained that councils should identify the resources and opportunities available in their areas and provide the necessary support to turn them into sources of economic growth.
He said the Federal Government was adopting a bottom-up development approach through the Renewed Hope Ward Development Plan, which is designed to identify local resources, investment opportunities and development needs.
The minister urged councillors to identify the economic potential of their respective wards.
“Properly identifying the resources available in each ward will help councils attract investors and develop practical plans, while also enabling them to present their challenges and make evidence-based requests to the Federal Government and development partners,” he said.
