A year has passed since Nigeria’s Supreme Court mandated that local government councils receive their statutory allocations directly from the Federation Account, yet state governments continue to control these funds, effectively stalling the implementation of local government autonomy.
The July 2024 ruling was a decisive legal victory for local councils, striking down the practice of routing allocations through state governments as unconstitutional. The Federal Government responded by setting up an inter-agency committee to facilitate compliance and directed the Central Bank of Nigeria to open individual accounts for all 774 local governments.
Despite these efforts, data from the Federation Account Allocation Committee shows that between July 2024 and June 2025, N4.5 trillion was allocated to local governments, but the funds were still disbursed through state governments rather than directly to councils.
Officials from the Attorney General’s office clarified that while the AGF has fulfilled his role, the implementation committee is chaired by the Secretary to the Government of the Federation, who is responsible for resolving bottlenecks. The committee includes representatives from ALGON and labour unions.
Local government employees and unions report ongoing delays. Muhammed Abubakar of ALGON said the association awaits updates from the SGF following submissions to President Tinubu. Yusuf Bello, NLC chairman in Gombe, lamented that local government chairmen still do not control funds and autonomy remains “the same scenario all over the nation.”
In Kwara and Kano States, local governments have yet to open CBN accounts, impeding direct funding. Sources allege that some local officials and union representatives have stalled the process due to personal interests.
Meanwhile, Adamawa State stands out for having granted local government autonomy before the ruling, with councils receiving funds directly from the Federal Government. Governor Ahmadu Fintiri’s administration is cited as a model for respecting the rule of law and separation of powers.
Senior Advocates of Nigeria have criticized the Federal and state governments for failing to enforce the Supreme Court’s judgment. Mike Ozekhome (SAN) described governors as deliberately circumventing the ruling, while Femi Falana (SAN) accused the AGF of inaction despite prior warnings.
Professor Itse Sagay (SAN) noted that constitutional provisions currently recognize joint accounts controlled by states, suggesting that constitutional amendments are necessary for full compliance.
This ongoing conflict between legal mandates and political realities continues to hinder the financial independence of local governments, undermining grassroots development and governance.