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ALGON supports President Tinubu’s plan to enforce direct allocation of council funds.
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Despite a Supreme Court ruling, states controlled about ₦7.43tn meant for local governments over 18 months.
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Mixed reactions trail the directive across states, with some pledging compliance and others disputing interference.
The Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have expressed support for President Bola Tinubu’s plan to enforce direct disbursement of local government funds from the Federation Account, as state governments continue to exercise control over council allocations.
President Tinubu made the call during the 15th National Executive Committee meeting of the All Progressives Congress held at the State House Conference Centre in Abuja, where he urged state governors to comply with the Supreme Court ruling granting financial autonomy to local governments.
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He warned that failure to obey the judgment could compel the Federal Government to issue an Executive Order mandating direct allocation of funds to local councils.
The warning follows a landmark judgment delivered by the Supreme Court on July 11, 2024, which upheld the Federal Government’s suit seeking to enforce financial independence for local governments. The apex court ruled that it was unconstitutional for state governments to retain or manage funds allocated to councils.
The court further declared that the use of caretaker committees amounted to undue state control of local governments, contrary to the provisions of the 1999 Constitution.
However, findings show that implementation of the ruling remains weak, more than a year after the judgment. Local government allocations have continued to pass through state governments amid delays and administrative bottlenecks involving the Central Bank of Nigeria, state authorities, and local councils.
Data obtained from Federation Account Allocation Committee (FAAC) disbursements indicate that state governments exercised control over about ₦7.43tn meant for the 774 local government councils between July 2024 and December 2025.
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An analysis of official FAAC releases from the Office of the Accountant-General of the Federation shows that local councils received ₦2.08tn between July and December 2024 and ₦5.35tn throughout 2025, even though the structure for direct access to the funds remained largely unchanged.
Monthly allocations to local governments steadily increased during the period, peaking at ₦529.95bn in October 2025. In total, council allocations rose by about 42 per cent year-on-year, reflecting broader growth in national revenue sharing.
Despite the increase, funds continued to be channelled through the State Joint Local Government Account, a system long criticised for allowing governors significant control over grassroots finances.
Reacting, ALGON’s Secretary-General, Muhammed Abubakar, said the association fully supports the President’s stance, noting that Tinubu’s warning was based on a binding Supreme Court judgment.
He expressed confidence that governors would comply with the ruling, adding that ALGON would back the President if further action became necessary.
Similarly, NULGE officials across several states welcomed the proposed executive action, describing it as a long-awaited relief for local government workers and a boost for grassroots development.
In Bauchi State, NULGE President Muhammad Yunusa said enforcing direct allocation would strengthen accountability and improve workers’ welfare, stressing that previous legal interventions had failed to yield results.
However, reactions across states were mixed.
While officials in Kano, Kebbi, Jigawa, and Nasarawa expressed optimism or pledged compliance, others denied any diversion of funds or accused the Federal Government of politicising the autonomy issue.
In Adamawa State, ALGON Chairman Suleiman Toungo claimed that councils already enjoyed autonomy, alleging that delays by the Central Bank were hindering full implementation.
Meanwhile, the Nigeria Governors’ Forum confirmed that President Tinubu has engaged governors on the matter and said details of their response would be made public after further consultations.
