Local government authorities and workers’ unions have renewed calls for the full implementation of financial autonomy for councils, backing President Bola Ahmed Tinubu’s insistence on direct allocation of local government funds from the Federation Account.
At the recent National Executive Committee meeting of the All Progressives Congress held at the State House, Abuja, President Tinubu warned state governors to comply with the Supreme Court judgment granting financial independence to local governments or face possible executive action to enforce direct funding.
The President’s warning follows the July 11, 2024 ruling of the Supreme Court, which declared it unconstitutional for state governments to retain or manage funds meant for local councils.
The apex court also faulted the use of caretaker committees, describing it as a violation of the 1999 Constitution.
However, more than a year after the landmark judgment, implementation remains slow.
Findings indicate that allocations to local governments are still routed through state governments under the State Joint Local Government Account system.
Data from the Federation Account Allocation Committee show that between July 2024 and December 2025, a total of ₦7.43 trillion was allocated to the 774 local government councils nationwide.
Despite this, the structure for direct access to the funds by councils has largely remained unchanged.
In 2024, councils received ₦3.77 trillion, while allocations rose to ₦5.35 trillion in 2025, representing an increase of about 42 percent.
Monthly allocations steadily increased during the period, peaking at over ₦529 billion in October 2025.
The continued control of council funds by states has raised concerns that increased revenue inflows are not translating into improved service delivery at the grassroots.
Reacting to the development, the Association of Local Governments of Nigeria, ALGON, and the National Union of Local Government Employees, NULGE, have expressed strong support for President Tinubu’s position.
ALGON’s Secretary General, Mohammed Abubakar, said the President’s directive was clear and rooted in the Supreme Court judgment, expressing confidence that governors would comply without further coercion.
Similarly, the Bauchi State chapter of NULGE described the proposed executive order as a welcome relief for local government workers, saying it would strengthen accountability and improve grassroots governance.
Mixed reactions have, however, emerged across states.
While governments in Kebbi, Jigawa and Kano states expressed readiness or optimism about compliance, unions in Nasarawa raised concerns over continued state control of council funds.
The Nasarawa State Government, on its part, denied interfering with local government finances, insisting that councils have enjoyed autonomy since 2019.
In Adamawa State, ALGON accused the Federal Government of politicising the autonomy issue, alleging delays by the Central Bank of Nigeria in opening accounts for councils, a key requirement for direct funding.
Meanwhile, the Nigeria Governors Forum says consultations are ongoing.
Its spokesperson, Yunusa Abdullahi, confirmed that President Tinubu has engaged state governors on the matter and that an official position will be communicated soon.
As the debate continues, stakeholders await concrete steps to translate the Supreme Court ruling into full financial autonomy for local governments across the federation.