The Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have expressed support for President Bola Tinubu’s plan to ensure that local government funds are directly deducted from the Federation Account Allocation Committee (FAAC), even as some state governments continue to control allocations to councils.
At the 15th National Executive Committee meeting of the All Progressives Congress (APC) held at the State House Conference Centre in Abuja, President Tinubu called on state governors to comply with the Supreme Court ruling granting financial autonomy to local governments. He warned that failure to do so might necessitate an Executive Order to guarantee direct transfers from the Federation Account to councils.
The Supreme Court ruling of July 11, 2024, upheld the Federal Government’s suit for local government financial independence, declaring it unconstitutional for states to retain or manage funds meant for councils. The court noted that caretaker committees constituted by state governments violated the 1999 Constitution by assuming control over local government finances.
Despite the landmark judgment, The PUNCH reports that implementation has been slow. Local government allocations continue to flow through state governments, often causing delays and disputes involving the Central Bank, state governments, local councils, and other agencies.
Data shows that between July 2024 and December 2025, state governments controlled at least N7.43 trillion intended for local councils, despite the Supreme Court’s directive for direct allocations. Analysis of FAAC disbursements reveals that councils received N3.77 trillion in 2024 and N5.35 trillion in 2025, representing a 42 percent increase year-on-year. Monthly allocations ranged from N337 billion in July 2024 to a peak of N529.95 billion in October 2025, yet funds continued to pass through the State Joint Local Government Account framework, allowing governors significant influence over council finances.
In support of Tinubu’s plan, ALGON Secretary-General Muhammed Abubakar said the President addressed governors directly on the matter, emphasizing the Supreme Court’s judgment. “We believe the governors will comply before the President takes further action. If not, we will support any measures he deems necessary,” he stated.
Similarly, NULGE chapters across the country have welcomed the President’s proposed executive order. Muhammad Yunusa, President of NULGE in Bauchi State, said the move would benefit local government workers, strengthen grassroots governance, and enhance accountability. He stressed that the issue of local government financial autonomy had persisted for years despite legal interventions.
Reactions from other states have been mixed. In Kebbi, officials confirmed their commitment to implementing full autonomy for local councils. Nasarawa NULGE President, Comrade Adamu Sharhabilu, noted that funds were still being routed through state ministries, but expected the President’s directive to change this. The Nasarawa State government clarified that local governments have enjoyed autonomy since 2019 under Governor Abdullahi Sule.
In Jigawa, ALGON expressed optimism that the state government would respect the Supreme Court ruling, while NULGE officials were not available for comment. In Adamawa, ALGON chairman Suleiman Toungo stated that the state government had long implemented local government autonomy, and council funds were already under local control. He called on the federal government to clarify issues related to the Central Bank’s role in opening accounts for councils to fully operationalize autonomy.
Other states, including Gombe, reported no cases of diversion of local government funds. The Nigeria Governors Forum (NGF) confirmed that President Tinubu had engaged governors, who are expected to provide an update on compliance with the Supreme Court ruling.
