The struggle for local government financial autonomy has intensified, with the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) backing President Bola Tinubu’s push for the direct disbursement of council funds from the Federation Account Allocation Committee (FAAC), even as state governments continue to exercise control over local government allocations.
At the 15th National Executive Committee meeting of the All Progressives Congress (APC) held at the State House Conference Centre in Abuja, President Tinubu urged state governors to comply with the Supreme Court ruling that guarantees financial autonomy for local governments.
The President warned that persistent non-compliance by governors could force the Federal Government to issue an Executive Order mandating the direct allocation of funds from the Federation Account to local councils.
Tinubu’s comments followed the landmark judgment delivered by the Supreme Court on July 11, 2024, which upheld the Federal Government’s suit seeking to enforce financial independence for Nigeria’s 774 local government areas.
In a unanimous decision, a seven-member panel of the apex court ruled that it is unconstitutional for state governments to retain, control, or manage funds meant for local councils.
The court further held that the use of caretaker committees effectively places local governments under state control, in clear violation of the provisions of the 1999 Constitution.
Despite the ruling, implementation has remained largely stalled 18 months later. Local government allocations continue to be routed through state governments, with delays and disagreements persisting among the Central Bank of Nigeria, state governments, local government authorities, and other relevant agencies.
The ongoing impasse highlights the widening gap between constitutional provisions and actual practice, as local governments renew calls for full financial autonomy to enable grassroots development and accountability.
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