Local governments and their workers have renewed demands for direct access to federal allocations after states retained control of N7.43tn meant for councils, despite a Supreme Court ruling granting full financial autonomy. The pressure follows a fresh warning by President Bola Tinubu to governors to comply or face executive action. The dispute is intensifying nearly 18 months after the landmark judgment.
Speaking at the 15th APC National Executive Committee meeting in Abuja, Tinubu urged governors to honour the July 11, 2024, Supreme Court decision that barred states from managing local government funds. He warned that continued non-compliance could force him to issue an executive order mandating direct deductions from the Federation Account Allocation Committee for councils.
The Supreme Court had ruled unanimously that routing council funds through state governments was unconstitutional. It also declared caretaker committees illegal, describing them as tools for state control over local governments. However, findings show that the ruling remains largely unimplemented across the country.
FAAC records indicate that between July 2024 and December 2025, local governments were allocated N7.43tn, but the funds continued to flow through the State Joint Local Government Account system. Councils received N2.08tn in the second half of 2024 and N5.35tn in 2025 alone, reflecting a sharp rise in revenues without corresponding financial independence.
In 2025, monthly allocations to councils crossed N500bn at their peak, with October recording N529.95bn. Despite the surge, governors maintained significant control over disbursements, raising concerns that increased funding has not translated into stronger grassroots governance.
The Association of Local Governments of Nigeria and the National Union of Local Government Employees have openly backed Tinubu’s position. ALGON Secretary General Muhammed Abubakar said governors were directly warned and should act before federal intervention becomes inevitable. NULGE leaders described the proposed executive order as overdue relief for local government workers.
Reactions from states remain mixed. While Kebbi and Kano expressed readiness to comply, Nasarawa workers said councils still lacked direct access to funds, a claim the state government denied. Jigawa officials offered cautious assurances, while Adamawa accused federal agencies, particularly the Central Bank, of frustrating implementation.
The standoff has placed governors, councils, and federal agencies on a collision course, with Tinubu’s next move expected to determine whether local government autonomy finally becomes reality.
