The Federal High Court in Abuja is set to hear a suit on Tuesday filed by the Association of Local Governments of Nigeria (ALGON) against the Central Bank of Nigeria (CBN) and other federal and state entities, over the implementation of local government financial autonomy.
The suit, marked FHC/ABJ/CS/353/2025, was brought by the Registered Trustees of ALGON against the Attorney General of the Federation, Minister of Finance, state Commissioners for Finance, and 21 other defendants.
Also listed as defendants are the Minister of Budget and National Planning, Accountant-General of the Federation, Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), the Nigerian National Petroleum Company Limited (NNPC), several commercial banks, and one Bello Lawal.
ALGON’s Demands
Following the Supreme Court’s July 11, 2024 ruling affirming financial autonomy for local governments, ALGON is asking the court to:
- Restrain the disbursement of funds to local councils without its prior approval.
- Mandate representation of all 774 local governments at Federation Account Allocation Committee (FAAC) meetings where revenue is shared.
ALGON’s Secretary-General, Mohammed Abubakar, confirmed to The PUNCH that the suit will be heard on Tuesday.
In its originating summons, ALGON asked for:
- A declaration that based on the Supreme Court ruling and its own 1999 Constitution, federal agencies must not disburse LG funds through state or private channels without ALGON’s authorization.
- A declaration that local governments must have representation at any federal-level deliberations regarding fund allocation, including FAAC meetings chaired by the Minister of Finance.
Allegations of Sabotage
ALGON accused the AGF, Ministry of Finance, state finance commissioners, and the CBN of taking “precipitate actions” to undermine the Supreme Court’s decision.
It also alleged that commercial banks named as defendants are already positioning themselves to act as unauthorized intermediaries for LG funds, a move ALGON says violates the Supreme Court’s ruling.
Defendants Challenge ALGON’s Legal Standing
Most defendants have filed preliminary objections, contesting ALGON’s locus standi and the court’s jurisdiction to hear the case.
CBN, represented by Sam Ologunorisa (SAN), argued that:
- ALGON is not recognized by the Constitution or any statute.
- ALGON was not a party to the Supreme Court case it now seeks to enforce.
- The association is an NGO, not a statutory body, and therefore lacks authority to demand a role in federal financial processes.
The CBN maintained that only statutory entities can interact with the bank regarding public finance and asked the court to dismiss the suit with substantial costs.
FAAC, Finance Commissioners Also Object
Representing FAAC and state commissioners, Olawale Fapohunda (SAN) also challenged ALGON’s legal standing. He stated:
- ALGON is a “mere busybody” with no official role in revenue allocation.
- FAAC’s composition is defined by law and does not include local government representatives, citing Section 6(1) of the Allocation of Revenue Act, 1982.
- ALGON has no constitutional or statutory right to demand involvement in FAAC meetings.
An affidavit filed by Jeff Otache, an administrative manager for the Incorporated Trustees of State Finance Commissioners, described the suit as “vague, evasive, and an abuse of court process,” and called for it to be struck out.
ALGON’s Response
In a counter-affidavit, ALGON defended its legitimacy, stating it was legally incorporated on May 10, 2002, with the core mandate to protect the interests and autonomy of local governments across Nigeria.
It submitted its constitution and CAC registration documents as proof of its status.
The group also accused the 24th defendant, Bello Lawal, of falsely parading himself as ALGON President without legal authority, in violation of its constitution.
