By Peter Omopo
Abuja, July 11, 2025 — Exactly one year after the Supreme Court mandated financial autonomy for Nigeria’s 774 local government councils, state governors continue to control council funds, defying the landmark judgment that declared such practice unconstitutional.
An investigation by The PUNCH has revealed that over N4.5 trillion in local government allocations has been disbursed through state governments since the July 11, 2024, verdict—despite clear directives for direct funding from the Federation Account.
The apex court had ordered that local councils receive their funds directly, labelling the decades-old Joint Account Allocation Committee (JAAC) system a breach of the constitution. In response, the Federal Government directed the Central Bank of Nigeria (CBN) to open separate accounts for each local council and set up an inter-agency committee to oversee compliance.
However, 12 months later, the implementation remains stalled across most states, with no single LG reportedly receiving funds directly from the CBN.
State Governors Blamed
Labour unions and legal experts have pointed fingers at the governors and federal authorities for the delay. Human rights lawyer Femi Falana (SAN) described the situation as a “clear contempt of court,” accusing the Federal Government of lacking the political will to enforce the ruling.
The General Secretary of the Association of Local Governments of Nigeria (ALGON), Muhammed Abubakar, said that although necessary documents were submitted to President Bola Tinubu, action remains pending. “We are waiting for the Secretary to the Government of the Federation (SGF) to update us on what the President intends to do next,” he said.
The Nigerian Labour Congress (NLC) Chairman in Gombe State, Yusuf Bello, also confirmed the stalemate, stating, “Nothing has changed. Local government chairmen still have no access to their funds.”
No CBN Accounts in Several States
Sources confirmed that LGs in Kano, Kwara, and Benue States have yet to open CBN accounts, a key requirement for direct disbursement. In Kwara, NULGE chairman Seun Oyinlade said no LG had complied with the CBN directive, while in Kano, a Ministry of Local Government official alleged that neither chairmen nor union leaders were pushing for compliance due to “personal interests.”
Benue State’s local government officials dismissed the state government’s claim of autonomy as false. One chairman from Benue North East questioned why LGs were still receiving “security votes” from the state if autonomy had truly been implemented. “This is a façade. We get N10 million monthly from the state, yet the councils earn over N380 million from federal allocations. Where is the autonomy?” he asked.
FG Denies Inaction
An official in the Office of the Attorney General of the Federation (AGF) said the federal government had fulfilled its role by securing the Supreme Court judgment and forming an implementation committee. “The AGF is not in charge of disbursement. The SGF chairs the implementation committee, and ALGON, labour, and the finance ministry are all members,” the source said.
Despite the inaction, FAAC figures show that LGs have received an average of 24.87% of the Federation Account disbursements monthly since July 2024. Yet, those funds remain inaccessible to most LGs in the way the constitution and court now require.
Mixed Reactions from States
In Bayelsa, NULGE chairman Comrade ThankGod Singer confirmed that the state still operates the JAAC model but reported no issues with salary payments or development projects. “There is harmony here, and teachers’ salaries are even supported by the state government,” he said.
Kano State’s Information Commissioner, Ibrahim Waiya, acknowledged that LGs were yet to receive direct allocations but said internal reforms were underway, including the formation of a Local Government Service Commission.
Legal Experts Demand Enforcement
Senior lawyers have warned that the continued disregard of the Supreme Court judgment sets a dangerous precedent. Falana and other SANs are urging the Federal Government to compel compliance or return to the courts to hold violators accountable.
As Nigeria marks the one-year anniversary of the ruling, the fate of grassroots governance remains in limbo. Analysts warn that until the ruling is implemented in both letter and spirit, local development, transparency, and accountability will remain severely compromised.
