[BREAKING] LG autonomy: Tinubu threatens govs with direct FAAC deductions

Tinubu Warns Governors: Executive Order Looms Over Direct LG Allocations

President Bola Ahmed Tinubu has issued a strong warning to state governors, saying he may be compelled to sign an Executive Order to enforce direct allocations to local governments if states continue to disregard the recent Supreme Court ruling on local government financial autonomy.

The President gave the warning on Friday while addressing members at the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC), held at the State House Conference Centre, Abuja.

Supreme Court Ruling and Governors’ Compliance

In a veiled but firm reference to governors allegedly withholding statutory allocations meant for local councils, Tinubu warned that continued non-compliance could force the Federal Government to directly disburse local government funds from the Federation Account Allocation Committee (FAAC).

Addressing NEC members, including governors, National Working Committee members, and other party leaders, the President said:

“The Supreme Court has capped it for you again, saying, ‘give them their money directly.’ If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it.”

Tinubu added that his patience with the governors should not be mistaken for weakness, stressing that enforcement would follow if necessary.

“I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, fact after fact, you will see.”

Background: July 11, 2024 Supreme Court Judgment

The President’s remarks follow the landmark Supreme Court judgment of July 11, 2024, which ruled in favour of the Federal Government in a suit seeking to enforce financial independence for Nigeria’s local governments.

In a unanimous decision delivered by a seven-member panel, the apex court declared that it is unconstitutional for state governments to retain, manage, or control funds allocated to local councils.

The court ordered that allocations from the Federation Account must be paid directly to local governments, in line with Section 162 (5–8) of the 1999 Constitution (as amended).

Joint Accounts Under Scrutiny

For years, most state governments have operated State–Local Government Joint Accounts, a system widely criticised for undermining grassroots development and local council autonomy.

The Supreme Court ruling effectively dismantles this practice, mandating that local councils receive and manage their funds independently.

Federal Government Signals Readiness to Act

Reiterating his stance, Tinubu emphasised that compliance with the apex court’s decision is non-negotiable and warned that persistent violations could invite direct federal action.

“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” the President insisted.

The warning signals a potentially major shift in Nigeria’s fiscal governance, as the Federal Government moves to enforce autonomy for the third tier of government amid resistance from some states.

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[BREAKING] LG autonomy: Tinubu threatens govs with direct FAAC deductions