The Association of Local Governments of Nigeria and the National Union of Local Government Employees have thrown their weight behind President Bola Tinubu’s plan to enforce direct deductions of council funds from the Federation Account Allocation Committee, even as state governments continue to retain control over allocations to local governments.
During the 15th National Executive Committee meeting of the All Progressives Congress at the State House Conference Centre, Abuja, Tinubu urged state governors to comply with the Supreme Court ruling granting financial autonomy to local governments.
The President warned that failure by governors to honour the verdict may compel him to issue an Executive Order to ensure direct allocations from the Federation Account to local councils.
Tinubu’s remarks followed the July 11, 2024, judgment by the Supreme Court, which upheld the Federal Government’s suit seeking to enforce financial independence for local governments.
In a unanimous decision, a seven-member panel of the apex court declared that it is unconstitutional for state governments to retain or manage funds meant for local councils.
The judgment held that the use of a caretaker committee amounts to the state government taking control of the local government and is in violation of the 1999 Constitution.
However, 18 months after the judgment, findings show that the process remains largely unimplemented.
Local government allocations have continued to pass through state governments amid delays and disputes between the Central Bank, state governments, local government authorities, and other relevant agencies.
The PUNCH learnt that state governments received control over at least N7.43tn meant for local government councils between July 2024 and December 2025, despite the landmark Supreme Court ruling mandating direct financial autonomy for councils across the federation.
An analysis of Federation Account Allocation Committee disbursements, based on official press statements issued by the Office of the Accountant General of the Federation after each FAAC meeting, shows that local governments were allocated N7.43tn over the 18-month period, even as the structure for direct access to the funds remained largely unchanged.
The amount was derived from allocations to the 774 local councils from July to December 2024 and the full 12 months of 2025.
In the second half of 2024 alone, councils received N2.08tn, rising sharply to N5.35tn in 2025.
FAAC data show that in July 2024, local governments received N337.02bn as revenue earned in June.
This rose to N343.70bn in August and moderated to N306.53bn in September. Allocations rebounded in the final quarter, climbing from N329.86bn in October to N355.62bn in November, before peaking at N402.55bn in December 2024.
