Autonomy battle: LGs demand direct funds as states receive N7.43tn
ALGON, NULGE Back Tinubu’s Plan for Direct Local Government Allocations Amid Supreme Court Ruling
The
Association of Local Governments of Nigeria (ALGON) and the
National Union of Local Government Employees (NULGE) have thrown their full support behind
President Bola Ahmed Tinubu’s plan to enforce direct deductions of local government funds from the
Federation Account Allocation Committee (FAAC), amid continued control of council allocations by state governments.
President Tinubu made this position clear during the
15th National Executive Committee meeting of the All Progressives Congress (APC) held at the
State House Conference Centre, Abuja, where he urged governors to comply with the
Supreme Court judgment granting financial autonomy to local governments.
Tinubu Threatens Executive Order
The President warned that failure by governors to respect the apex court’s verdict may force him to issue an
Executive Order mandating direct allocation of funds to local councils from the Federation Account.
Tinubu’s warning followed the landmark
July 11, 2024 Supreme Court judgment, which upheld the Federal Government’s suit seeking to enforce financial independence for local governments nationwide.
Supreme Court Declares State Control Unconstitutional
In a unanimous decision by a
seven-member panel, the Supreme Court ruled that it is unconstitutional for state governments to retain, manage, or interfere with funds meant for local councils.
The judgment further held that the use of
caretaker committees amounts to the illegal takeover of local governments by state governments, in clear violation of the
1999 Constitution.
18 Months After Judgment, Implementation Still Lags
Despite the clarity of the ruling, findings by
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reveal that implementation remains largely stalled, with local government allocations still routed through state governments amid bureaucratic delays and institutional disputes involving the
Central Bank of Nigeria (CBN), states, and local councils.
Data obtained from FAAC disbursement records show that state governments retained control over at least
₦7.43 trillion meant for local governments between
July 2024 and December 2025, despite the Supreme Court’s ruling.
Breakdown of Local Government Allocations
An analysis of FAAC statements issued by the
Office of the Accountant General of the Federation shows that local governments received a total of
₦7.43 trillion over the 18-month period:
- ₦2.08 trillion in the second half of 2024
- ₦5.35 trillion throughout 2025
In 2024, monthly allocations ranged from
₦306.53bn in September to a peak of
₦402.55bn in December, while 2025 saw allocations climb steadily, peaking at
₦529.95bn in October.
State Governments Still Control Funds
Despite increased inflows, funds continued to pass through the controversial
State Joint Local Government Account system, enabling governors to retain significant influence over council finances and raising concerns about grassroots development and accountability.
ALGON Endorses Tinubu’s Position
Speaking in Abuja, ALGON Secretary-General
Muhammed Abubakar affirmed the association’s support for Tinubu’s stance, noting that the President anchored his warning firmly on the authority of the Supreme Court.
“So basically, as you are aware, he said it in their presence, not in their absence. I believe the governors will comply before the President takes further steps,” Abubakar said.
He added that ALGON would fully support the President if governors failed to comply with the ruling.
NULGE Applauds Proposed Executive Order
The
NULGE Bauchi State chapter also praised Tinubu’s proposed executive action, describing it as a long-awaited relief for local government workers nationwide.
According to Bauchi NULGE President
Muhammad Yunusa, full implementation would strengthen grassroots governance, improve workers’ welfare, and enhance accountability.
Mixed Reactions Across States
Reactions across states remain mixed, with governments in
Kebbi, Nasarawa, Jigawa, Kano, Adamawa, and Gombe offering varied responses ranging from support to cautious optimism and outright criticism of federal agencies such as the CBN over delays in opening council accounts.
Several NULGE and ALGON leaders expressed hope that Tinubu’s directive would finally translate into action, while others accused the Federal Government of politicising the issue of local government autonomy.
NGF Promises Response
The
Nigeria Governors’ Forum (NGF) confirmed that President Tinubu had engaged state governors on the matter and assured Nigerians that a formal response would be communicated soon.
As the debate continues, the fate of local government financial autonomy remains a defining issue in Nigeria’s federal structure, with implications for governance, accountability, and development at the grassroots level.
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