One year after S’Court ruling, Govs.. still control ₦4.5tr LG funds – Report

LG funds Report2

FG insists Tinubu committed to autonomy

Exactly one year after the Supreme Court ordered direct funding for Nigeria’s 774 local governments, state governors still maintain control over their allocations, defying the landmark ruling and frustrating efforts to strengthen grassroots governance.

LG funds Report2

A recent report revealed that between July 2024 and June 2025, local councils received about ₦4.5 trillion from the Federation Account, yet the funds continued to pass through state governments rather than going directly to local government accounts as the Supreme Court directed.

The apex court had declared the use of the State Joint Local Government Account unconstitutional and ordered the Central Bank of Nigeria (CBN) to open individual accounts for each council. However, in most states, these accounts remain unopened or inactive, forcing local governments to depend on state-controlled disbursements.

Labour unions and constitutional lawyers blame both the governors and the Federal Government for the stalled implementation. The Nigeria Labour Congress (NLC) and local government workers say state leaders are clinging to council funds for political leverage, while legal experts like Femi Falana (SAN) and Mike Ozekhome (SAN) accuse the Attorney-General of failing to enforce the court’s decision.

In states like Kwara, Kano, and Benue, local officials admit they still do not receive direct allocations. Even where separate accounts exist, many councils say they remain financially strangled. Only a few states, including Adamawa and Jigawa, claim near-compliance, though lawyers warn that more robust constitutional amendments may be required to fully resolve the impasse.

Despite the standoff, the Federal Government has restated President Bola Tinubu’s commitment to full local government autonomy as a cornerstone of democratic deepening and grassroots development.

Information minister

Minister of Information and National Orientation, Mohammed Idris, gave the assurance yesterday when he received members of the National Forum of Ex-Councillors, in Abuja. According to him, the President remains focused on ensuring the Supreme Court’s ruling is implemented as intended.

“The local government, which is the third-tier of government, is actually the closest to the people, and that is why President Bola Ahmed Tinubu, in his wisdom, revisited the issue of autonomy”, Idris said.

He acknowledged that local governments were once vibrant but have been weakened over the years by undue interference, pledging that the current administration is determined to restore their constitutional role.

Idris urged state governors to align with the President’s drive to return local councils to the original design of Nigeria’s federal system, saying their autonomy would strengthen democracy and spur development at the grassroots.

The Minister also appealed to the Forum of Ex-Councillors to support the administration’s reforms, noting that tough decisions like fuel subsidy removal and exchange rate unification were yielding savings that have increased allocations to both states and local governments.

While receiving a “People-Oriented Award” from the Forum, Idris thanked the group for recognising the government’s efforts and called on its members to help explain Tinubu’s reform agenda to Nigerians.

For now, however, local councils across the country continue to struggle for financial independence — one year after a Supreme Court ruling meant to guarantee it.

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