Strengthening Local Governance Crucial to Poverty Reduction—FG

The Federal Government has emphasized the importance of grassroots governance in achieving President Bola Tinubu’s poverty reduction and economic development agenda, reaffirming its commitment to empowering local government institutions as a cornerstone of national progress.

Speaking at a high-level policy dialogue organized by AGORA Policy in Abuja, with support from the MacArthur Foundation, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said that only democratically elected local government councils now receive direct allocations from the Federation Account.

This, he noted, is in full compliance with the recent Supreme Court judgment affirming the constitutional autonomy of local governments.

“This is not a policy choice—it is a constitutional obligation to uphold the ruling of the highest court in the land,” Edun stated.

He said the move aligns with President Tinubu’s broader reform strategy, which places grassroots empowerment at the heart of efforts to reduce poverty, promote inclusive governance, and improve service delivery nationwide.

“Grassroots empowerment is not just a governance issue; it’s an economic imperative,” Edun declared.

To strengthen development at the local level, the minister highlighted several key federal initiatives including:

• Nutrition 774 Programme, which provides nutritional support across all 774 LGAs
• Project 774 Digital Connectivity, designed to expand broadband access and digital services
• The HOPE Programme, supported by the World Bank, which focuses on human capital development

“These are not symbolic gestures,” Edun stressed. “They are deliberate investments in systems that promote inclusive development, attract private sector confidence, and reduce economic exclusion.”

He further noted that equipping local governments to deliver essential services and infrastructure will not only drive sustainable growth but also enhance national unity and stability.

Edun called for deeper collaboration between federal, state, and local government levels, saying real economic transformation can only be achieved through coordinated efforts.

The dialogue brought together leading policymakers, development experts, and stakeholders from both public and private sectors to discuss innovative solutions for strengthening governance and driving impactful development at the grassroots.