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One year after the Supreme Court granted full autonomy to Nigeria's 774 local government areas, the Federal Government continues to channel allocations through state governments.
State governors have reportedly maintained control over council allocations totaling N4.5 trillion, despite the Supreme Court's ruling mandating direct funding to local governments.
On July 11, 2024, the Supreme Court declared that local governments must receive their allocations directly from the Federation Account, deeming the practice of routing funds through state governments unconstitutional.
In response, the Federal Government formed an inter-agency panel to supervise the ruling's implementation and instructed the Central Bank of Nigeria (CBN) to create individual accounts for each of the 774 local councils to enable direct disbursements.
However, one year later, the process remains largely unexecuted, with local government allocations continuing to pass through state governments amidst delays and disputes involving the CBN, state governments, local government authorities, and other agencies.
An analysis of data from the Federation Account Allocation Committee (FAAC) shows that between July 2024 and June 2025, N4.496 trillion was allocated to local councils, accounting for 24.87 percent of the N18.074 trillion distributed among all three tiers of government during the year.
According to monthly communiqués from FAAC, allocations to local governments were N337.02 billion in July 2024, N343.70 billion in August, N306.53 billion in September, N329.86 billion in October, and N355.62 billion in November.
In December, local governments received N402.55 billion, with subsequent allocations of N361.75 billion in January 2025, N434.57 billion in February, and N410.56 billion in March.
Later allocations included N387 billion in April, N406.63 billion in May, and N419.97 billion in June. Despite the percentage of total allocations to local governments remaining stable, between 24 and 25 percent monthly, the disbursement method continues to violate the Supreme Court's ruling.
An official from the Office of The Attorney General of the Federation stated that the AGF had fulfilled his responsibilities, explaining that the Federal Government established a committee to ensure full autonomy for local governments.
According to the source, the Attorney General is not responsible for fund disbursement; the implementation committee created by the Federal Government is led by the Secretary to the Government of the Federation, with the AGF as a member.
The source also noted that the AGF had already won the case in court, and the moratorium previously granted to governors was to enable them to conduct local government elections.
The General Secretary of the Association of Local Governments of Nigeria (ALGON) Employees, Muhammed Abubakar, stated that the association is awaiting updates from the Office of the Secretary to the Government of the Federation regarding documents submitted to President Bola Tinubu.
According to Abubakar, Tinubu considered governors' concerns and tasked Secretary to the Government of the Federation, George Akume, and Attorney General of the Federation, Lateef Fagbemi (SAN), to address the impediments hindering the ruling's implementation.
Confirming the wider delay, Gombe State NLC chairman Yusuf Bello indicated that no changes have occurred nationwide, highlighting that appointed chairmen still lack control over funds, making autonomy a distant goal. A source at the NULGE Gombe office, speaking anonymously, confirmed that implementation challenges are a national issue, stating that "All paperwork has been finalized. The implementation problem isn’t exclusive to Gombe; it’s a nationwide challenge".
Reports indicate that the 16 local governments in Kwara State have yet to open accounts with the CBN, with the Kwara NULGE chairman, Seun Oyinlade, stating that “the local government chairmen are still in the process of opening the accounts with the CBN”.
The state’s Nigeria Labour Congress chairman, Comrade Saheed Olayinka, expressed ignorance about whether the LGs had opened their CBN accounts but suggested that the accounts might be established this month. Similarly, the 44 local governments in Kano State have not yet complied with the CBN's directive on account openings. A reliable source from the Ministry for Local Government and Chieftaincy Affairs stated, “To my knowledge, none of the 44 councils in the state has opened accounts with the CBN. We heard the apex bank opened an account for each local government, but regularization is still pending”.
Concerns were raised regarding local government council chairmen and NULGE officials not pursuing efforts to have the councils open the accounts as directed by the apex bank due to personal interests.
Kano State's Commissioner for Information and Internal Affairs, Ibrahim Waiya, confirmed that local governments in the state have not begun receiving statutory allocations directly from the Federal Government, describing it as a national issue, with many northern states failing to complete internal requirements for compliance, such as establishing local government service commissions.
Waiya stated that Kano has progressed by creating its commission and added that Governor Abba Kabir Yusuf granted local governments the authority to manage resources independently.
Bayelsa State's NULGE chairman, Comrade ThankGod Singer, noted that states and local councils throughout Nigeria still operate under the Joint Account Allocation Committee (JAAC). He stated that while many local councils have yet to open dedicated accounts with the CBN, Bayelsa faces no issues, as the state and local councils collaborate through JAAC to manage allocations.
It was also learned that the Benue State Government has not complied with the Supreme Court ruling. Despite public claims of implemented autonomy, findings indicated otherwise, with several council chairmen dismissing such assertions as misleading.
Three anonymous chairmen expressed disappointment over recent claims from the state's ALGON chairman, Maurice Orwourgh, insisting that local councils in the state operate autonomously. One chairman questioned, “If autonomy truly exists, why does the state government still allocate us N10 million monthly for security? Local governments get at least N385 million monthly from federal allocations—why do we require state assistance?”. Another chairman lamented that none of the 23 local government areas have undertaken any significant projects since the current administration took over, declaring, “We have not even constructed a culvert”. A chairman from Benue South attributed the withholding of local government funds to escalating insecurity. Former governor Samuel Ortom criticized the current Governor Hyacinth Alia for violating the Supreme Court ruling, questioning why the governor continues to control council finances.
The NULGE in Nasarawa State reported that the 13 local governments in the state have opened their accounts and are prepared to receive direct allocations from the Federal Government, although they have yet to actually receive any funds.
The NULGE chairman in the state, Adamu Sharhabilu, noted, “Currently, the Nasarawa State government exhibits no intention to undermine local government workers or obstruct the implementation of LG autonomy in the state. I can inform you that Governor Abdullahi Sule has been expressing dedication to ensuring local government workers receive their due entitlements and benefit from LG autonomy”. However, he reiterated that no allocations have been sent directly to the councils from the Federal Government; funds continue to be sent to the joint accounts.
The Bauchi State NULGE chairman, Muhammad Yunusa, disclosed that local governments in the state have also failed to establish bank accounts with the CBN in light of the Supreme Court’s ruling.
He added that the union is actively working to achieve the judgment's implementation, having submitted a memorandum to the Senate and planning to do the same for the House of Representatives. Similarly, Jigawa State NLC chairman Sanusi Maigatari stated that local governments in the state had received federal allocations prior to the Supreme Court order, but he could not confirm whether local governments had opened CBN accounts for direct fund reception.
Maigatari urged the state government to address necessary gaps to improve local government financial and administrative autonomy.
The Jigawa NULGE chairman, Abubakar Shitu, shared that the state has nearly achieved 95 percent local government autonomy, asserting that, unlike in other areas, Jigawa faces no problems with financial autonomy, just administrative autonomy.
However, while many local governments express frustration over the delayed implementation of the ruling, Adamawa State ALGON Chairman and Chairman of Toungo Local Government, Suleiman Gankuba, affirmed that councils have been receiving federal allocations directly from the Federal Government.
“Governor Ahmadu Fintiri granted local governments autonomy prior to the Supreme Court decision, making local government autonomy a non-issue for us in Adamawa,” he explained.
Augustina Wandamiya, the state’s Commissioner of Finance, stated, “Adamawa was the first state to implement LG autonomy without waiting for the Supreme Court ruling because Governor Fintiri believes in the rule of law and the separation of powers”.
Prominent constitutional lawyers criticized the ongoing disregard for the Supreme Court’s ruling on local government autonomy, nearly a year after the landmark decision.
Senior Advocates of Nigeria expressed concern over non-compliance, calling it a significant affront to the rule of law and faulting both Federal and state governments for undermining enforcement. Professor Mike Ozekhome (SAN) denounced the apparent attempts by state governors to ignore the Supreme Court’s ruling, highlighting the explicit directive that allocations from the Federation Account under Section 162 of the 1999 Constitution should no longer transit through the State Joint Local Government Account but go directly to the councils.
He emphasized the power imbalance between state governors and local government chairmen, many of whom are appointees lacking genuine electoral legitimacy and remaining dependent on the governors for their positions.
Femi Falana (SAN) targeted the Federal Government, notably the Attorney General of the Federation, Lateef Fagbemi (SAN), for failing to enforce the ruling. Falana questioned why the AGF has not activated constitutional provisions to compel compliance, especially after publicly stating that non-compliance could amount to treason. Citing Section 287 of the Constitution, Falana asserted that Supreme Court judgments are binding on all entities and persons.
Conversely, Professor Itse Sagay (SAN) offered a more nuanced perspective, acknowledging that while the ruling had positive goals, it contradicted existing constitutional stipulations.
He explained that the Constitution currently recognizes the State Joint Local Government Account, and absent an amendment, direct payments to local governments could technically contravene the law. Another senior lawyer, Adedayo Adedeji (SAN), described the ruling as a pivotal affirmation of local government autonomy yet lamented the inadequate implementation.
He noted that state governments are still reluctant to relinquish their political and financial control over local councils. Paul Obi (SAN) expressed disappointment, stating that "It’s unfortunate that despite the clear constitutional provisions on this matter and the Supreme Court's existing ruling, governors are intentionally opposing the judgment and adhering more to violation than compliance".
