One year after the Supreme Court ruled in favour of full financial autonomy for Nigeria’s 774 local government areas, state governors have continued to withhold local government funds in defiance of the landmark judgment.
According to The PUNCH, despite the July 11, 2024 ruling, which declared it unconstitutional to route local government funds through state governments, disbursements from the Federation Account have not reached local councils directly. Instead, state governments retained control of a staggering N4.5 trillion allocated to LGAs between July 2024 and June 2025.
According to data from the Federation Account Allocation Committee, LGs received an average of 24–25% of the total federal allocation monthly, yet the channel of disbursement contradicts the Supreme Court’s directive.
In response to the judgment, the Federal Government had directed the Central Bank of Nigeria to open accounts for all LGAs to facilitate direct transfers. However, this implementation remains largely on paper.
An official from the Office of the Attorney General of the Federation who spoke on condition of anonymity, said the AGF had fulfilled his legal responsibilities.
“The AGF is not responsible for disbursing funds. A committee led by the Secretary to the Government of the Federation was constituted for implementation. The AGF only played a legal role by securing the ruling,” the source stated.
The Association of Local Governments of Nigeria and the Nigeria Labour Congress have expressed concerns over the persistent delay. ALGON’s General Secretary, Muhammed Abubakar, said the SGF was expected to brief stakeholders on documents submitted to the President regarding the governors’ concerns.
“The President gave a listening ear to the governors and mandated the SGF and AGF to work on those issues. We are waiting for updates,” he said.
But in Gombe State, the NLC chairman, Yusuf Bello, stated that nothing has changed across the country, with LG chairpersons still unable to access their allocations.
“Does any chairman have the right to touch the money? It’s still pocketed. The situation remains the same nationwide,” Bello said.
Similarly, in Kano, Kwara, and Benue states, the situation is no different. Local councils in these states are yet to open the required accounts with the CBN, a prerequisite for direct allocation.
In Benue, several LG chairmen denied claims of autonomy, saying they were still dependent on monthly subventions controlled by the state.
“If autonomy truly exists, why does the state government still allocate N10 million monthly as security votes when LGs receive over N380 million?” one chairman queried anonymously.
Meanwhile, in states like Nasarawa and Bauchi, although LG accounts have been opened, allocations are yet to be received directly from the Federation Account. In Bayelsa, Jigawa, and other states, the Joint Allocation Account Committee system remains in place.
However, Adamawa stands out as an exception. The Chairman of ALGON in the state, Suleiman Gankuba, confirmed that LGs there have been receiving direct allocations even before the Supreme Court ruling.
“Governor Ahmadu Fintiri had already granted autonomy to LGs. It’s not a new thing for us,” he said.
Legal experts have sharply criticised the non-compliance. Constitutional lawyer and Senior Advocate of Nigeria, Mike Ozekhome, described the governors’ actions as a direct affront to the rule of law.
“The Supreme Court judgment was crystal clear. The continued withholding of LG funds by governors is unconstitutional,” Ozekhome said.
Femi Falana (SAN) also faulted the Federal Government and the AGF for failing to enforce the ruling.
“The AGF must invoke constitutional provisions to compel compliance. Judgments of the Supreme Court are binding on all authorities,” he noted.
Professor Itse Sagay (SAN) offered a more cautious interpretation, suggesting that the Supreme Court’s ruling, while well-meaning, contradicts existing constitutional structures that recognise the State Joint Local Government Account.
“The Constitution must be amended to align with the judgment,” Sagay said.
Another SAN, Adedayo Adedeji, described the situation as “a legal victory without real-world application,” blaming both the federal and state governments for lacking the political will to implement the judgment.
“Until our leaders respect constitutional governance, the judgment will remain symbolic,” he added.
Despite continued legal advocacy and union pressure, the impasse over local government autonomy highlights deep-rooted political resistance, particularly at the state level, to relinquishing control over grassroots governance and finance.