Twelve months after the Supreme Court ruled in favour of full financial autonomy for Nigeria’s 774 local government areas, state governors have continued to control council funds in defiance of the judgment. Between July 2024 and June 2025, a total of ₦4.5 trillion allocated to LGAs was channelled through state governments rather than being paid directly to the councils, as ordered by the court.
The Supreme Court had declared the Joint Account Allocation Committee (JAAC) system unconstitutional, mandating that allocations from the Federation Account be credited directly to local government accounts. However, despite this landmark ruling, the implementation remains stalled. Many states, including Kwara, Kano, Bauchi, Benue, and Delta, have failed to open dedicated Central Bank of Nigeria (CBN) accounts for their local governments, as required.
Legal experts and civic leaders have expressed concern over the governors’ continued grip on council funds. Prominent lawyers like Femi Falana (SAN) and Mike Ozekhome (SAN) have condemned the non-compliance, describing it as a breach of constitutional order and a serious threat to democratic governance at the grassroots. Labour unions have also called for urgent intervention to enforce the ruling.
Only a few states, such as Adamawa, have complied with the autonomy directive. In Adamawa, local governments reportedly receive direct allocations and function independently. Conversely, in many other states, council officials have confirmed that while allocations are released monthly, they remain under the control of state governments and do not enjoy full autonomy in managing the funds.
Data from the Federation Account Allocation Committee (FAAC) indicates that LGAs received over ₦4.49 trillion during the one-year period, representing nearly 25% of total national revenue shared among the federal, state, and local governments. Yet, in practice, most councils remain financially dependent on their respective state governments.
This ongoing disregard for the Supreme Court judgment has raised concerns about the rule of law and the fate of local governance in Nigeria. Many stakeholders are now urging the Federal Government to take decisive action to ensure the ruling is enforced, and that local governments are empowered to function as truly autonomous entities.
