One Year After: Governors Still Control N4.5 Trillion LG Funds Despite Supreme Court Ruling

Exactly one year after the Supreme Court granted full autonomy to Nigeria’s 774 local government areas, governors continue to control local government funds, defying the landmark judgment. According to recent findings, state governors retained control of council allocations totaling N4.5 trillion, breaching the July 11, 2024, ruling that mandated direct funding to local governments.

Key Highlights:

• N4.5 Trillion Funds: Despite the Supreme Court’s judgment, governors still control local government funds amounting to N4.5 trillion, allocated between July 2024 and June 2025.
• Non-Compliance: The Federal Government has failed to enforce the Supreme Court’s directive, with local government allocations continuing to pass through state governments amid delays and disputes.
• Lack of Implementation: Local governments have yet to open accounts with the Central Bank of Nigeria (CBN) for direct allocation reception, and some states, like Kwara and Kano, are not complying with the directive.
• Stakeholder Reactions: Labour unions, such as NULGE, have blamed governors and the Attorney General of the Federation for delaying implementation, while senior advocates like Femi Falana have accused the Federal Government of failing to enforce the judgment.

What’s Next?

A dialogue themed “Local Governance Reforms a Year After Supreme Court’s Ruling” will be held on July 22, 2025, in Abuja to assess the progress and challenges of local government reforms. The event aims to bring together government officials, civil society leaders, and development partners to reflect on the implementation of the landmark judgment.