₦airaland Forum

Nearly two years after the Supreme Court delivered a landmark judgment granting financial autonomy to Nigeria's 774 local government councils, implementation of the ruling remains largely incomplete, raising fresh concerns about grassroots governance despite more than ₦10.48 trillion being allocated to councils during the period.

The July 11, 2024 judgment directed the Federal Government to pay statutory allocations directly into the accounts of democratically elected local governments, ending the long-standing practice of routing funds through State Joint Local Government Accounts.

The ruling was widely celebrated as a major step toward strengthening grassroots administration, improving accountability, and ensuring that local communities benefit directly from public funds.

However, available evidence suggests that implementation has been inconsistent across the country, with many councils still operating under financial arrangements largely controlled by state governments.

Allocations Rise Above ₦10 Trillion

An analysis of Federation Account Allocation Committee (FAAC) disbursements shows that local government councils received approximately ₦10.48 trillion between July 2024 and June 2026.

During the first twelve months following the Supreme Court judgment, councils received about ₦4.5 trillion. That figure increased significantly to nearly ₦6 trillion during the following twelve months, representing a year-on-year increase of more than 33 percent.

The sharp increase reflects improved revenue generation and higher FAAC distributions across all tiers of government.

Despite the larger allocations, many communities across Nigeria continue to complain about poor infrastructure, inadequate healthcare services, deteriorating roads, insufficient schools, and limited access to clean water.

Autonomy Still Largely Unimplemented

Although the Supreme Court clearly directed that allocations should be paid directly to local government accounts, reports from several states indicate that many councils are yet to receive their allocations independently.

Officials in different parts of the country say local governments still depend on state governments for the release of funds, while approval is often required before projects can be executed.

The continued operation of State Joint Local Government Accounts has become one of the major issues delaying full implementation of the judgment.

For many years, labour unions, civil society organisations and local government officials have argued that the joint account system weakens grassroots administration because councils lack full control over their finances.

NULGE Raises Fresh Concerns

The National Union of Local Government Employees (NULGE) says financial autonomy remains largely theoretical.

According to the union, allocations have not been paid directly to councils in many states despite repeated appeals to the Federal Government to fully implement the Supreme Court judgment.

NULGE maintains that genuine financial independence can only be achieved when local governments receive allocations directly into their own accounts without interference.

The union believes this would improve service delivery, strengthen accountability and enhance development at the grassroots level.

Implementation Differs Across States

Findings indicate that implementation varies from one state to another.

Officials in states including Kaduna, Kano, Benue, Plateau and Sokoto reportedly say councils still rely on state-controlled financial arrangements.

In several of those states, council chairmen reportedly require state approval before embarking on major projects.

However, Jigawa State has emerged as one of the few states where local government officials say direct federal allocations are already being paid into individual council accounts.

Officials there argue that the arrangement has improved transparency and enabled councils to respond more quickly to community needs.

Grassroots Communities Demand Better Services

Questions over local government autonomy have become increasingly relevant as communities continue to demand improved public services.

Residents in several parts of the country have called for better roads, functional primary healthcare centres, improved public schools, stronger security and enhanced rural infrastructure.

Many citizens argue that the significant increase in allocations should translate into visible improvements in their communities.

Development experts have consistently maintained that granting local governments genuine financial independence would strengthen grassroots democracy and improve accountability in public spending.

Federal Government Yet to Complete Implementation

Following the Supreme Court judgment, the Federal Government established an inter-ministerial committee to develop procedures for implementing direct allocation payments.

The committee was expected to resolve legal and administrative issues involving relevant institutions, including the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, the Federal Ministry of Finance and the Office of the Attorney-General of the Federation.

However, nearly two years later, stakeholders say nationwide implementation remains incomplete.

Analysts believe that achieving full local government autonomy will require stronger political commitment, improved administrative coordination and strict compliance with the Supreme Court's judgment.

Autonomy Seen as Key to Grassroots Development

Governance experts argue that local governments remain the closest tier of government to ordinary Nigerians and should therefore possess both administrative and financial independence.

They say effective local government administration is essential for improving primary education, healthcare, sanitation, rural roads, agriculture and community development.

As Nigeria continues discussions on constitutional reforms and governance restructuring, the implementation of local government financial autonomy is expected to remain one of the country's most significant governance issues.

For many Nigerians, the real success of the Supreme Court judgment will not be measured by the amount allocated to councils but by whether those resources ultimately translate into improved living conditions at the grassroots.

Source: https://thebureaujournal.com/local-government-autonomy-10-48tn-allocations/

The only state where compulsory local autonomy is in force is Osun state and we all know why. In all other states, Tinubu traded enforcement of local government autonomy for support from the governors, despite a subsisting supreme court judgement. They talk about "bold reforms" and count it as achievement but it's all audio.

AMINDA:
The only state where compulsory local autonomy is in force is Osun state and we all know why. In all other states, Tinubu traded enforcement of local government autonomy for support from the governors, despite a subsisting supreme court judgement. They talk about "bold reforms" and count it as achievement but it's all audio.

River state inclusive.
The reason why they implemented the autonomy was to fight their perceived foes.
The actions of the AGF in the height of the crisis lends credence to the fact.

Una good morning...

Weather too cold no mean say fish go wear sweater

This federal government is now audio government as far as this autonomy is concerned

Hope the state Police reform will not be the same story

Though i don't know the motive behind it but i believe the president knows about it, those governors are evil and devil incarnate. If it continues like this nothing will work in Nigeria. So also state police will not work

Until INEC starts conducting LG elections before the LGs have true autonomy.

All these LG elections conducted by state RECs are just ways of governors installing their own stooges into LG offices.

Amend the constitution to allow INEC conduct LG elections during the regular election cycles.

Sheuns:
Until INEC starts conducting LG elections before the LGs have true autonomy.

All these LG elections conducted by state RECs are just ways of governors installing their own stooges into LG offices.

Amend the constitution to allow INEC conduct LG elections during the regular election cycles.

I agree with you 100%. While I believe that Tinubu is not a perfect fit for presidency, LGAs are making his work harder and more ineffective.

All thanks to the greediness of the governors... Maybe the federal government should take away immunity of these governors... Any governor that interfares with local government funds should be removed

We only select which law they want to obey. Tinubu can enforce it by paying directly to LGA accounts, but we preferred politics than all things.

Judolisco:
All thanks to the greediness of the governors... Maybe the federal government should take away immunity of these governors... Any governor that interfares with local government funds should be removed

Some of you just come in public and talk what you don't know. Under the Nigerian constitution there is nothing called local govt autonomy. It is written there plain and boldly that they are under the state Govornors and the state house of Assembly

And moreso there is no place in the world that there is three federating unit,it is always two. The federal and the state

After tinubu dragged them to the courts why have they not even been able to implement the court judgement? I mean the FG themselves? Why haven't they?

Because so called LG autonomy is a ruse.

There is a reason why they use joint accounts since 99. Pull funds together to sort the bills of each of them.

Maybe you should go back to pre 99 and see the disaster under LG's in Nigeria

Shior

Abia state is the number 1 breaker of this Supreme Court ruling as no single allocation has been disbursed to all local govt secretaraits as the governor instituted a consolidated revenue system backed by law passed by the bottle smashing state legislators

Money that is still control by most state governors.
Nigeria is really a big zoo..

The British should not have given us independence we cant even properly manage a public toilet

Nigerian politicians are being clever by half, that is one of the reasons the country is not making much progress.
The intent of the constitution in my understanding regarding funding the three tiers of government is as follows:
The federal government collects revenue due to the federation to the (Federation Account ) and then distributes among the three tiers of government. This supplements the revenue collected by the states and local governments individually.
The share due to states and local governments are paid to the joint state and local government accounts. Replicating what is done at the federal level. The state will then distribute to the local governments. But it does not stop there. The state government is supposed to SHARE part of its internally generated revenue with the local governments.
In essence the federal government has one stream of revenue. The states have two while the local governments should have THREE.
Why should this be the case because the local governments are closest to the people. And should provide for their basic needs be it health, transportation, schools and other social services.
This is one of the reasons there appears to be so much poverty in the land.

I totally agree with you on this.

It's really a shame how the so called NADECO democrats have all open our eyes to the well kept lies of over 30 years.




UNAM -IKOT

AMINDA:
The only state where compulsory local autonomy is in force is Osun state and we all know why. In all other states, Tinubu traded enforcement of local government autonomy for support from the governors, despite a subsisting supreme court judgement. They talk about "bold reforms" and count it as achievement but it's all audio.

Tinubu has so embarrassed himself that the local media doesn't even need to inform us about his failures

It's now international reportage e g World Bank,IMF,and Bloomberg.

Even the international lobby group paid to launder his image funds it hard to deliver

Omashe oooo

What an.........



UNAM -IKOT

Judolisco:
All thanks to the greediness of the governors... Maybe the federal government should take away immunity of these governors... Any governor that interfares with local government funds should be removed

The president is to be blamed.

Supreme court has settled the lga autonomy brouhaha.

It's left for the presidency to enforce it. It's only in Osun and River States that lga autonomy is active.

happney65:
Some of you just come in public and talk what you don't know. Under the Nigerian constitution there is nothing called local govt autonomy. It is written there plain and boldly that they are under the state Govornors and the state house of Assembly

And moreso there is no place in the world that there is three federating unit,it is always two. The federal and the state

After tinubu dragged them to the courts why have they not even been able to implement the court judgement? I mean the FG themselves? Why haven't they?

Because so called LG autonomy is a ruse.

There is a reason why they use joint accounts since 99. Pull funds together to sort the bills of each of them.

Maybe you should go back to pre 99 and see the disaster under LG's in Nigeria

Shior

oga shut up, if they don't do it in other countries, does it mean we shouldn't do it... We've been copying other countries since 1960, have we gotten it right? ... Every time we are trying to come up with something that will move the country forward...people like you will always pop up with a contrary opinion... I'm not against you voicing your opinion but at least think and come up with your own ideas... Immediately you said there's not place in the world, I stopped reading...

Tenses:
The president is to be blamed.

Supreme court has settled the lga autonomy brouhaha.

It's left for the presidency to enforce it. It's only in Osun and River States that lga autonomy is active.

why are governors greedy.. Their allocations have been increased.. Make dem free local governments na

Judolisco:
why are governors greedy.. Their allocations have been increased.. Make dem free local governments na

The questions you should be asking:

1. why did the federal government, APC, Tinubu and his supporters celebrate the judgment as a landmark achievement?

2. Why is Tinubu's government only enforcing the judgment in 2 states which Tinubu was directly or indirectly fighting the governors?

3. If Tinubu could successfully enforce the judgment in 2 states and forced the governors to bow to the judgment, what's stopping him from doing it in the 36 states if truly he did these whole LG autonomy of a thing in the interest of the people and if truly the 2 states he enforced it was also for the interest of the people?

Tinubu is the leader of the governors and is supposed to lead them by example , is that what he is doing?

You see why I call you people irrational thinkers...

The same states that will scream to the high heaven if the FG sits on their fund is doing worse to the LG administration.

Supreme court judgement is no longer respected. What w shame,!

How would you even expect the chairmen to shout to the public when it was the Governors that bought them application form for the elect and bankrolled their campaigns.

I dont think this democracy is benefiting Nigeria and Nigerians. It is benefiting only our politicians -especially the State Governors who are the epitome of the worst.

DID YOU KNOW
Do you know it is the responsibility of the local government to provide shelter for homeless people?

Maybe we need to call UN for the saint Governor calling on the UN.

The LG funds are in his right pocket while the left pocket has the N30B of innocent Bodija people who are mostly retirees.

Sheuns:
Until INEC starts conducting LG elections before the LGs have true autonomy.

All these LG elections conducted by state RECs are just ways of governors installing their own stooges into LG offices.

Amend the constitution to allow INEC conduct LG elections during the regular election cycles.

..abi.. local government are not independent..still under the control of the state governor

Imagine what 10.48 trillions naira would had done in the development of many villages, communities, LGA area in Nigeria by now..
State governors are so selfish and greedy

Judolisco:
why are governors greedy.. Their allocations have been increased.. Make dem free local governments na

It's selfishness and greediness among our leaders and politicians that is destroying this country Nigeria.. imagine what 10.48 trillions naira would had done in the development of LGA area, villages, communities in Nigeria if this money is sent directly to the local government.
It's a pity

Absolutely! It’s a simple matter of ensuring the smooth running of local governance. Let's just have a little more evidence to support the argument for increased autonomy.