One year after the Supreme Court ruled that local governments in Nigeria should get their funds directly from the federal government, state governors are still in control of the money. An investigation by The PUNCH revealed that states have managed a total of ₦4.5 trillion meant for local councils since the ruling.
On July 11, 2024, the Supreme Court ruled that the practice of passing funds through state governments was illegal. The court ordered that money from the Federation Account should go directly to all 774 local government councils.
In response, the federal government set up a committee and asked the Central Bank of Nigeria (CBN) to open bank accounts for each local government. But one year later, the money still goes through state governments, delaying the full independence of local councils.
“Data from the Federation Account Allocation Committee (FAAC) shows that from July 2024 to June 2025, ₦4.496 trillion was allocated to local governments. This represents almost 25% of the total ₦18.074 trillion shared among the three levels of government.
Despite this, the Supreme Court’s ruling is not being followed. Disagreements between the CBN, states, local councils, and other agencies have slowed progress.
A source in the Office of the Attorney General of the Federation (AGF) said, “The AGF has done his part. The implementation committee is led by the Secretary to the Government of the Federation, not the AGF.”
Muhammed Abubakar, General Secretary of the Association of Local Government Employees (ALGON), confirmed that the issue was still being worked on.
“The President asked the Secretary to the Government and the AGF to fix the problems raised by governors. We are now waiting for updates,” Abubakar said.
However, local government workers in many states say nothing has changed.
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Yusuf Bello, Chairman of the Nigeria Labour Congress (NLC) in Gombe State, said, “It’s the same everywhere. Council chairmen still don’t have control over the money.”
In Kwara State, “the 16 local governments have not opened CBN accounts,” according to NULGE Chairman Seun Oyinlade.
In Kano, a government official said “none of the 44 councils had regularised their CBN accounts.”
“The local governments have not complied fully. The problem is that some council leaders benefit personally and are not pushing for change,” the official said.
Kano State Commissioner for Information, Ibrahim Waiya, said, “Most northern states haven’t completed the steps needed. But here in Kano, we’ve made progress. The governor supports autonomy.”
In Bayelsa, NULGE Chairman ThankGod Singer said there was no conflict between the state and the councils.
“We still operate a joint account system, but salaries and projects are moving smoothly,” he said.
In Benue State, however, several council chairmen said “autonomy was just a political statement.”
One chairman said, “If we get ₦385 million monthly, why are we only given ₦10 million as security votes?”
Former Governor Samuel Ortom also criticised the Benue government for not respecting the court’s ruling.
“None of the 23 LGAs has even built a culvert,” his spokesman said.
In Nasarawa, local governments opened their CBN accounts, but money is still sent through the joint account.
NULGE Chairman Adamu Sharhabilu said, “The FG hasn’t sent a single kobo directly to the LGs.”
Bauchi NULGE Chairman Muhammad Yunusa said “the union submitted a memo to the Senate and plans to do the same with the House of Representatives.”
In Jigawa, officials claim “95% financial autonomy has been achieved. But NULGE Chairman Abubakar Shitu said the real issue is with the federal government, which has not provided a Certified True Copy of the court ruling.”
Adamawa stands out as the only state where local governments receive their funds directly.
ALGON Chairman Suleiman Gankuba said, “Governor Fintiri gave us autonomy even before the court ruling.”
Commissioner of Finance Augustina Wandamiya added, “Adamawa was the first state to implement full local government autonomy. The governor respects the rule of law.”