Local Government Autonomy Stalled: Supreme Court Ruling Remains Unimplemented Despite N2 Trillion Allocation

The Supreme Court’s landmark July 2024 ruling aimed to transform Nigeria’s local government landscape by mandating direct financial autonomy for the country’s 774 Local Government Areas. This groundbreaking judgment directed that funds allocated to local governments should be paid directly into their accounts, bypassing state governments. However, six months after the ruling, implementation remains stalled, creating significant tension between local government bodies and state administrations.

Despite the clear judicial directive, the Federation Accounts Allocation Committee has continued to disburse approximately N2.08 trillion in allocations to local government councils through state government accounts. This persistent practice has drawn sharp criticism from the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE), who argue that the continued interference undermines local governance and grassroots development.

Financial Allocation Trends Reveal Complex Dynamics

An in-depth analysis of the Federation Accounts Allocation Committee’s monthly reports reveals a nuanced financial landscape. From July to December 2024, the total distributable revenue amounted to N8.351 trillion, with local government councils receiving approximately 24.9% of the total revenue. Notably, the allocations demonstrated significant variation, with monthly disbursements ranging from N306.533 billion in September to N402.553 billion in December.

The financial data also highlights a remarkable 72.06% increase in local government allocations compared to the same period in the previous year, representing an additional N869 billion. This substantial growth underscores the potential for enhanced local governance if funds are managed independently. However, the Minister of Finance, Wale Edun, has cited “practical impediments” as the reason for not implementing direct payments, with a government committee currently examining the feasibility of the Supreme Court’s directive.

Legal and Administrative Challenges Impede local council Autonomy

The Supreme Court’s seven-member panel, led by Justice Emmanuel Agim, delivered a comprehensive judgment that goes beyond mere financial autonomy. The ruling explicitly declared it unconstitutional for state governors to control local government funds and emphasized that only democratically elected councils should manage their financial resources. The court was unequivocal in stating that appointing caretaker committees amounts to a violation of the 1999 Constitution.

Attorney General Lateef Fagbemi has added weight to the judiciary’s stance, warning state governors about potential contempt of court proceedings if they continue to bypass the Supreme Court’s judgment. Fagbemi stressed that local government autonomy is designed to empower grassroots communities, not to facilitate fund misappropriation.

Stakeholders Demand Immediate Implementation

Local government representatives have been vocal in their frustration. Mohammed Abubakar, ALGON’s Secretary-General, expressed bewilderment at the ongoing delays, suggesting that entities opposed to local government autonomy are effectively obstructing progress. local council employees and former chairmen, like Francis Famurewa from Osun State, have described the current system as reducing local council to mere “appendages” of state administrations.

The persistent challenges include governors’ arguments about insufficient funds for essential services like healthcare and primary education. However, ALGON and NULGE argue that implementation should proceed first, with subsequent discussions addressing any potential financial shortfalls.

As Nigeria enters 2025, the unresolved local government autonomy issue remains a critical test of the nation’s commitment to decentralized governance and constitutional principles.

Constitutional Implications and Future Prospects

The Supreme Court’s judgment underscores fundamental constitutional principles, declaring that state governments cannot arbitrarily appoint caretaker committees or control local government finances. The seven-member judicial panel, led by Justice Emmanuel Agim, explicitly stated that only democratically elected local council councils should receive and manage their allocated funds.

Attorney General Lateef Fagbemi has added weight to the judicial directive, warning state governors about potential contempt of court proceedings if they continue to bypass the Supreme Court ruling. The AG also cautioned local council chairmen against misappropriating funds, positioning the autonomy as a mechanism for empowerment rather than personal enrichment.