State governments received a total of N1.46tn meant for local government councils in the first quarter of 2026, despite the Supreme Court ruling granting financial autonomy to local councils, according to financial data reviewed from official federation accounts and national statistics sources.
The funds, drawn from allocations for January, February, and March 2026 revenue, were shared through February, March, and April FAAC disbursements respectively.
The figure marks a 19.05 per cent increase compared to the N1.23tn allocated to councils in the same period of 2025, even though implementation of the Supreme Court judgment delivered on July 11, 2024, remains largely stalled.
The apex court had ruled that allocations due to local governments should be paid directly to democratically elected councils, stating that state governments lack constitutional authority to retain or control such funds.
However, nearly two years later, local government funds are still being processed within the existing Federation Account Allocation Committee structure, with states continuing to play a dominant role in fund administration.
Breakdown of the FAAC data shows that councils received N537.88bn from January 2026 revenue, N456.47bn from February, and N468.83bn from March.
While year-on-year comparisons show an increase across all months, the monthly pattern revealed volatility, with allocations dropping in March before a slight recovery in April.
Overall, total distributable revenue to all tiers of government stood at N6.97tn in the first quarter of 2026, down from N7.40tn recorded in the same period of 2025.
Despite the decline in total revenue, federal, state, and local governments all received higher nominal allocations, while derivation payments to oil-producing states fell by 18.29 per cent.
The Federal Government received N2.04tn, states got N2.10tn, and oil-producing states received N321.90bn as derivation.
Local governments accounted for about 20.99 per cent of total disbursements, but analysts say the impact of increased allocations remains limited without full enforcement of financial autonomy.
Critics continue to argue that the old system of routing funds through State Joint Local Government Accounts still allows state governments to exert control over grassroots resources, despite the Supreme Court ruling intended to end the practice.
Local councils remain responsible for basic services such as primary healthcare, rural roads, sanitation, and community infrastructure, but weak financial independence has been linked to poor service delivery.
Civil society groups have called for stronger accountability mechanisms and full implementation of the autonomy ruling, warning that continued delays could undermine governance at the grassroots level.
