Supreme Court Ruling Ignored: Governors Maintain Grip on LG Funds After One Year
One year after the Supreme Court mandated direct allocation of funds to Nigeria’s 774 local government councils, state governors continue to control over ₦4.5 trillion in local government funds, defying the historic ruling and frustrating efforts to implement true fiscal federalism.
Despite the Supreme Court’s July 11, 2024 judgment declaring the practice of routing local government allocations through state governments unconstitutional, widespread non-compliance persists across most states.
Between July 2024 and June 2025, local governments received ₦4.496 trillion approximately 25% of the ₦18.074 trillion shared from the Federation Account. However, the method of disbursement remains largely unchanged.
The apex court had instructed the Federal Government to ensure direct remittances to LGs via the Central Bank of Nigeria (CBN), bypassing the state-controlled Joint Allocation Accounts.
In response, the Federal Government formed an implementation committee and directed the CBN to create accounts for all LGs a directive largely ignored by many states.
Local government autonomy has long been a contentious issue in Nigeria, with state governors frequently accused of hijacking council funds. The 2024 Supreme Court ruling was seen as a major win for grassroots governance and accountability.
Yet, findings show that LGs in Kwara, Kano, Benue, Nasarawa, and several other states are yet to open dedicated CBN accounts, rendering the directive ineffective. In some states, appointed officials still dominate council leadership, further weakening the autonomy push.
“Does any chairman have the right to touch the money? It’s the same scenario across the country,” lamented Gombe NLC Chairman, Yusuf Bello, who added that financial control remains out of reach for many LG executives.
Senior lawyers also criticised the continued flouting of the ruling. Human rights lawyer, Femi Falana (SAN), described the situation as a “blatant disregard of the Constitution,” accusing both the Federal and state governments of sabotaging enforcement.
Mike Ozekhome (SAN) echoed similar concerns: “The judgment was clear. State governors are simply starving local governments of funds and service delivery capacity.”
In contrast, Professor Itse Sagay (SAN) suggested that the ruling may have conflicted with constitutional provisions supporting the Joint Allocation Account, stressing the need for constitutional amendment.
Meanwhile, some states like Adamawa claim to have complied even before the court’s ruling. ALGON Chairman in the state, Suleiman Gankuba, stated that councils in Adamawa receive direct allocations from the FG, thanks to proactive steps by Governor Ahmadu Fintiri.
But in Benue, multiple LG chairmen decried their lack of autonomy, with one stating: “If autonomy truly exists, why does the state still allocate ₦10 million to us as ‘security vote’ when we receive over ₦385 million monthly?”
