The Federal Government has restated its commitment to strengthening local government institutions as a foundation for inclusive economic growth in Nigeria. This position was articulated by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a policy dialogue organized by AGORA Policy with backing from the MacArthur Foundation.
Edun highlighted that empowering local governance is a central part of President Bola Ahmed Tinubu’s strategy to reduce poverty. According to Edun, “Grassroots empowerment is not just a governance issue, it’s an economic imperative.”
The Minister also pointed to recent government actions following the Supreme Court’s decision on local government autonomy. He stated that only democratically elected local councils now receive direct allocations from the Federation Account, noting, “This…is not a policy choice but the government’s constitutional obligation to uphold the judgment of the highest court of the land.”
Several initiatives have been launched to support these reforms. These include Nutrition 774 Programme, Project 774 Digital Connectivity, and the HOPE Programme with World Bank support. The programmes aim at improving human capital development, expanding digital access, and increasing service efficiency at the local level—areas seen as vital for Nigeria’s long-term productivity.
“These are not symbolic gestures,” Edun said. “They are structured investments in governance that catalyse private sector confidence, reduce economic exclusion, and foster scalable development.”
Edun concluded his remarks by urging greater coordination among all levels of government: “the full economic benefit of local government reform can only be realised through strategic collaboration and policy discipline.”