Exactly one year after Nigeria’s Supreme Court ruled that local governments must receive their funds directly from the Federation Account, the Federal Government continues to release allocations through the state governments, contrary to the landmark decision.
In July 2024, the court declared that it was unlawful for states to manage local government funds and insisted that each of the 774 LGAs must be paid directly. But investigations reveal that between July 2024 and June 2025, governors have continued to hold on to about N4.5 trillion meant for the councils.
Despite a directive from the Federal Government and the Central Bank of Nigeria (CBN) to open accounts for each local government, most states have yet to comply.
Monthly data from the Federation Account Allocation Committee (FAAC) shows steady payments averaging between N300bn and N430bn to LGs monthly, but the funds still pass through the states.
Sources at the Office of the Attorney General of the Federation (AGF) say a committee was set up to implement the ruling. However, delays remain due to unresolved issues. One official said, “The AGF already did his part by winning the case. Implementation is now in the hands of the SGF-led committee.”
The General Secretary of the Association of Local Governments Employees, Muhammed Abubakar, stated that President Bola Tinubu responded to governors’ concerns and asked the Secretary to the Government of the Federation (SGF), George Akume, and the AGF to resolve issues holding back implementation.
Labour leaders have also voiced frustration. Yusuf Bello, the NLC chairman in Gombe, said the autonomy is only on paper. “It’s still the same all over the country. Chairmen can’t touch the money,” he noted.
In several states including Kwara, Kano, and Benue, local governments have not opened accounts with the CBN. Some officials blame this on lack of pressure from within. In Kwara, NULGE chairman Seun Oyinlade confirmed no CBN accounts had been opened. A similar situation exists in Kano, where officials admitted that councils had not regularised their CBN accounts.
In Bayelsa, NULGE Chairman ThankGod Singer confirmed that the Joint Account Allocation Committee (JAAC) system is still in operation, with the state government involved in paying teachers and executing projects. In Benue, council chairmen openly dismissed claims of autonomy, calling it a cover-up. “Not even a culvert has been built,” one lamented.
Some states like Nasarawa and Jigawa claim to be close to compliance, though allocations are still not directly reaching LG accounts. Nasarawa NULGE chairman, Adamu Sharhabilu, said accounts had been opened, but no funds had been sent directly.
Adamawa stands as a rare exception. ALGON chairman Suleiman Gankuba said councils have been receiving allocations directly since Governor Ahmadu Fintiri granted autonomy before the court judgment. “Autonomy is not new to us,” he noted.
Prominent lawyers have criticised the situation. Mike Ozekhome (SAN) said governors are deliberately ignoring the judgment, starving LGs of funds. Femi Falana (SAN) blamed the Federal Government and AGF for not enforcing the ruling. “The judgment must be obeyed, no matter the politics,” he said.
Professor Itse Sagay (SAN), however, noted a legal gap. He argued the Constitution still recognises joint accounts and needs to be amended for full enforcement.
Other senior advocates, like Adedayo Adedeji and Paul Obi, described the continued non-compliance as a reflection of weak political will and selfish leadership.
