Despite the ruling and the committee’s formation, one year later, the enforcement remains stalled. Local government allocations continue to be routed through state governments, which still control the councils’ coffers.
Analysis shows that between July 2024 and June 2025, over N4.5 trillion intended for local governments was paid into joint state and local government accounts, defying the Supreme Court’s directive for direct payments.
Several factors have contributed to the delay:
- In August 2024, a three-month moratorium was agreed upon by federal and state governments due to concerns over salary payments to council workers and the need to conduct local government elections in some states.
- In February 2025, the CBN imposed a prerequisite that local governments must provide at least two years of audited financial reports before opening accounts for direct fund remittance, a condition criticized as an unnecessary delay tactic.
- Bureaucratic inertia and political maneuvering between the federal government, state governors, and the CBN have further clogged the implementation process.
Opposition and Legal Actions by Local Government Associations and Civil Society
The Association of Local Governments of Nigeria (ALGON), the National Union of Local Government Employees (NULGE), lawyers, and civil society organizations have condemned the delay, accusing both state governors and federal agencies of deliberate obstruction.
- ALGON has taken legal action by suing the Attorney General and others, demanding enforcement of the Supreme Court ruling and inclusion of local governments in the Federation Account Allocation Committee (FAAC).
- ALGON Secretary General Muhammed Abubakar criticized the CBN’s directive to open accounts on behalf of LGs, arguing it undermines the principle of autonomy by centralizing control.
- NULGE President Aliyu Haruna Kankara warned that the delay harms grassroots communities and threatened mass protests if the federal government continues to stall enforcement.
- Human rights lawyers and anti-corruption advocates have attributed the delay to political interests, lack of political will, and interference by state governors who resist relinquishing control over local government funds.
State Governors’ Position and Calls for Checks and Balances
While state governors deny complicity in the delay, they emphasize the need for checks and balances to ensure proper use of funds under autonomy. Katsina State Governor Dikko Umar Rada stated that in his state, local governments enjoy some autonomy with budget oversight and monitoring by the state government to ensure accountability.
The Nigeria Governors’ Forum (NGF) Director General, Dr. Lateef Shittu, absolved governors of blame and referred inquiries to the SGF-led committee overseeing the ruling’s enforcement.
Impact on the Nigerian People and Grassroots Development
The delay in implementing local government autonomy continues to negatively affect Nigerians at the grassroots level. Essential services such as primary education, health care, sanitation, marketplaces, and local infrastructure remain underfunded and poorly managed due to the continued control of LG funds by state governments.
NULGE and civil society leaders warn that until local governments receive their funds directly and independently, the quality of services and development at the grassroots will suffer, perpetuating hardship for rural communities
