Local government autonomy, widely hailed as a landmark reform for strengthening grassroots governance, is now facing growing frustration as the Supreme Court ruling meant to enforce it continues to suffer slow and inconsistent implementation across councils. In this report, GODWIN ENNA, Katsina, FELIX IGBEKOYI, Asaba, PATRICK OCHOGA, Benin City , NNAMDI MBAWIKE, Enugu , INIOBONG EKPONTA, Uyo, By Ibrahim Obansa, Lokoja, EMMANUEL MGBEAHURIKE, Owerri , ABU NMODU, Minna , NONYE EKWENUGO, Kaduna , ATTAH ANTHONY, Jalingo ,KABIR WURMA, Birnin Kebbi and JOSHUA DADA, Osogbo examine the lingering challenges slowing down the full implementation of the judgment
The Supreme Court of Nigeria, on July 11, 2024, granted financial autonomy to the country’s 774 local government councils, affirming them as the third tier of government in a landmark judgment widely regarded as a major step toward strengthening grassroots governance.
The landmark ruling was particularly significant against the backdrop of long-standing concerns that state governors often withhold or interfere with funds allocated to local government areas from the Federation Account. By the judgment, the apex court directed that statutory allocations should henceforth be paid directly into the accounts of the 774 local councils, in a bid to guarantee independence and accountability at the grassroots level.
However, nearly a year after the verdict, questions persist over its full implementation, as observers and stakeholders continue to assess how far local councils have actually benefited from the ruling and whether the promise of true financial autonomy is being realized on the ground.
Our correspondents conducted checks across various states, engaging local council officials and stakeholders to assess the extent to which the Supreme Court judgment has been implemented. The findings reveal a mixed picture, with some councils expressing cautious optimism while others lamented persistent delays and administrative bottlenecks that continue to hinder full financial autonomy.
In several areas,our correspondents were told by some officials that the expected direct flow of federal allocations has either been irregular or still influenced by existing state-level structures.
Others, however, noted modest improvements in transparency and access to funds, though they insist that the gains remain far from the level anticipated at the time of the judgment.
Overall, the assessment points to a system still in transition, where the promise of local government autonomy is yet to fully translate into consistent practice across the country.
50 Percent Allocation Claim: ALGON Explains LG Funding System In Katsina
The Association of Local Governments of Nigeria (ALGON), Katsina State chapter, has responded to emerging reports alleging that local government councils receive only about 50 per cent of their statutory allocations after certain deductions, clarifying the structure and process of fund control and disbursement in the state.
Speaking with our correspondent, the acting chairman of ALGON in Katsina State, Hon. Rabo Tambaya, who is also the chairman of Danja local government area, insisted that the funding system remains transparent and functional, adding that all 34 local government councils in the state receive their full and due allocations.
The response follows findings from an investigation alleging that local governments receive only about half of their statutory funds after various deductions, raising renewed concerns about the extent of financial autonomy at the grassroots level. The report also noted that the last disbursement received by councils was in February 2026.
Reacting to the claims, Hon. Tambaya explained that allocations to local governments are determined through the Joint Allocation Committee (JAC), where state officials and local government chairmen meet after Federation Account disbursements to deliberate on the sharing of funds.
“I am not aware of any local government that has been denied its allocation. What I know is that we sit together and allocations are made to all the 34 local government areas,” he said.
He acknowledged that there could be slight delays in disbursement in some instances but insisted that such delays do not amount to denial of funds.
On the issue of deductions, Tambaya did not directly confirm the 50 per cent figure cited in the investigation but emphasized that mechanisms are in place to ensure that funds released are properly utilized for developmental purposes.
In Delta State, Governor Sheriff Oborevwori according to LEADERSHIP Sunday findings has been implementing local government financial autonomy even before the apex court delivered its verdict.
According to the director general of the Delta State Bureau for Orientation and Communications, Barr. Latimore Oghenesivbe, said recent comments by President Bola Tinubu expressing concern over alleged non-compliance by some governors with the Supreme Court ruling do not apply to Delta State.
He added that Oborevwori had long been an advocate of council autonomy, noting that the governor would continue to respect lawful directives and final court judgments in governance.
Corroborating this position, the chairman of Ndokwa West local government area, Delta State, Chief Obi Nzete confirmed that the governor remains committed to constitutional compliance and the enforcement of laws that promote accountability, transparency, equity, and good governance.
“Governor Sheriff Oborevwori was the first governor to comply with the supreme court judgment on local government financial autonomy,” he said.
“Immediately after the local government council chairmen were inaugurated last year, he released all monies due to them in a single tranche and has never defaulted in the release of their monthly allocations.
The chairman, Oshimili south local government, Delta state, Hon Kelvin Obi, also claimed the positive impact of council autonomy is evident across the state as he aid councils now have the financial capacity to execute road construction projects and, to a large extent, perform their constitutionally assigned responsibilities to the people.
No Tampering With Edo Councils Fund—LG Boss
In Edo State, our correspondent gathered that the Supreme Court judgment granting financial autonomy to the 774 local government councils in Nigeria and recognizing them as the third tier of the country’s governance structure appears to have taken effect.
Speaking on the autonomy of councils in Edo State, the acting chairman of Egor local government council, Hon. Osaro Eribo, said, contrary to insinuations of low funding, Governor Monday Okpebholo does not interfere with council funds in the state.
He said, “Before I came on board, I used to hear people say that councils are not well funded. Since I assumed office, I have discovered that what they are saying is total blackmail.
“What we are getting from the state is enough for us to execute at least two projects after paying salaries. What can be more autonomous than that?”
In Enugu, our investigation revealed that, following the Supreme Court judgment on local government autonomy, almost all council chairmen are now executing massive infrastructural projects, including road construction, hospital upgrades, electrification projects, among others.
Some of the local government chairmen confirmed that the state government is not tampering with their funds.
It was also gathered that local government workers are now being paid directly, easing previous concerns over salary delays and ownership of wage obligations.
The chairman of Igbo-Etiti local government area of Enugu State, Dr. Eric Odo, confirmed the financial autonomy of local governments in the state.
He commended Governor Peter Mbah for allowing local governments in the state to manage their funds without interference from the state government.
The council chairman stated that Igbo-Etiti local government under his leadership has been able to undertake several projects in areas such as road rehabilitation, rural electrification, and improvement of basic social amenities due to the availability of funds.
Also confirming the autonomy of local government in Enugu, the Chairman of Igboeze South local government area, Barr. Ferdinand Ugwueze, commended Governor Peter Mbah for his administration’s policy of not interfering with funds meant for local government councils.
Dicey Situation In Akwa Ibom
The local government financial autonomy as adjudicated and determined by the Supreme Court has not been implemented seamlessly, as the 31 councils’ monthly allocations still pass through the state/local government joint account, with chairmen still required to travel to Uyo for monthly disbursement meetings involving Governor Umo Eno, the commissioner for local government and Chieftaincy Affairs, and financial officers in the State Executive Council (SEC).
“The allocations still pass through the state government coffers before we are summoned to attend the Joint Account session for our take-home after deductions. We are far from operating local government autonomy in Akwa Ibom,” an aggrieved chairman from one of the councils in the Oron Federal Constituency lamented.
Oyo
Local government council chairmen in Oyo State carry out their responsibilities by overseeing grassroots development, maintaining local security, and implementing infrastructural projects such as roads, markets, and health services.
Our correspondent gathered that they operate under the supervision of the Oyo state government, often prioritising community engagement and supporting the governor’s developmental initiatives.
Key aspects of their operations as revealed include grassroots development, security coordination, social service delivery, infrastructure provision, accountability, and capacity building. They are also expected to work closely with council staff and engage with the Oyo State local government Commission, which provides training aimed at improving service delivery.
Kogi Begins Implementation
Kogi State has commenced the full implementation of local government autonomy, according to sources within the state government, although uncertainties remain over key aspects of the process, LEADERSHIP Sunday has gathered.
A government source confirmed that council chairmen are now receiving their full statutory allocations, suggesting a shift toward greater financial independence at the grassroots level.
However, the source noted uncertainty over whether all 21 local government areas in the state have opened individual bank accounts to receive funds directly from the Federation Account, as required under the autonomy framework.
“I’m aware that the council chairmen are now collecting their full allocations, but I’m not sure if they have opened their individual accounts.The level of development projects they are undertaking shows they are more financially comfortable than before. The source said. ”
The Kogi State Government had earlier assured stakeholders of its readiness to fully implement local government autonomy.
This assurance was given by the Auditor-General for Local Governments, Hon. Yakubu Siyaka Adebenege, during an induction course for local government officials and administrative staff.
Osun
Despite ongoing legal tussle over local government administration in Osun State, Council chairmen elected on the platform of the All Progressives Congress in 2022 are currently in control of local government administration and receiving allocations direct from the federation account.
The federal government had withheld Osun local government fund allocations following the Supreme Court judgement that only dully elected local government functionaries should receive local government allocations and litigations were on over who was in charge of local government administration in the state.
However with the ruling of Justice Muhammed Baba-Idris that it is criminal for the federal government to withhold local government allocations and the Akure federal Court of Appeal judgement that validated the election of dictionaries elected in 2022, the federal government released the allocation to the account purportedly opened by the APC council chairmen.
The scenario is still causing logjam in local government administration in the state following the perceived expiration of the 2022 elected local government functionaries.
Kebbi
Chairmen of local government councils in Kebbi State are operating within the laws governing the local government system.
The chairman of Birnin Kebbi local government area and chairman of the Association of Local Governments of Nigeria (ALGON) in Kebbi State, Dahiru Nayaya Ambursa, said that since the Supreme Court verdict directing that allocations be paid directly into local government accounts, councils have been receiving their funds directly into their accounts, unlike before
He added that whenever councils intend to execute projects, they inform the state government for approval to avoid clashes, noting that approval is usually granted automatically if the projects fall within local government responsibilities.
He further stated that no sitting governor can tamper with local government funds without due process or the consent of the relevant authorities.
Constitutional Gaps, Debt Obligations Slowing Implementation In Taraba
Despite the Supreme Court’s landmark ruling granting financial autonomy to local governments, local councils in Taraba State have continued to operate independently, with officials insisting that constitutional gaps and lingering debt obligations are slowing full implementation of the judgment.
Chairman of ALGON in the state, Hon. Moses Maihankeli, told LEADERSHIP Sunday that, councils in the state have been enjoying the support of Governor Agbu Kefas in executing rural projects to the people.
Hon. Maihankeli noted that while the Supreme Court ruled in favour of local government autonomy, full implementation of the judgment requires amendments to relevant provisions of the 1999 Constitution as amended, which he described as the “grand norm” of the country.
“The Supreme Court gave a judgment in favour of local governments, but the Constitution remains the highest law. For the ruling to be fully implemented, necessary constitutional amendments must be carried out,” he said.
According to him, Taraba councils had already been enjoying freedom in it operation prior to the court ruling, and attributed this to the approach of Governor Agbu Kefas.
“For us in Taraba, even before the Supreme Court judgment, the governor has given local governments a free hand to operate. At joint account meetings, available resources are assessed and allocated based on the needs of the people,” Maihankeli stated.
The ALGON chairman, however said the persistent financial challenges facing local governments, particularly deductions from statutory allocations to service loans inherited from previous administrations.
“Loans obtained by previous administrations are still being deducted from allocations. Whatever comes in, the loans are serviced first, and the balance is what goes to the local governments,” he explained.
Maihankeli said the impact of these deductions would have been more severe without the intervention of the state government, which he said provides additional support for rural development projects.
In Niger, Joint Account Still Operational
In Niger; the state and local government joint account is still operational however the Chairman of All Local Government Chairmen Association , ALGON Hon Ilya Zakeri said the councils were not denied of funds.
Like many states of the federation , it was learnt that there have never been direct remittance to the local government councils from the federation account as ordered by the Supreme court.
The ALGON chairman who was reelected as chairman of Agwara local government had however told LEADERSHIP Sunday that the administration of Governor Mohammed Umaru Bago has complied with the extant laws as far local government administration was concerned in the state.
Kaduna State
In Kaduna State, local government councils said they are now carrying out their functions with greater independence following the Supreme Court judgment on local government autonomy.
The vice chairman of Kagarko local government area, Titus Musa, told our correspondent that councils in the state are operating effectively and discharging their responsibilities without undue interference.
According to him, the administration of Governor Uba Sani has already taken steps to ensure that local governments enjoy autonomy, enabling them to respond more directly to the needs of their communities.
“We are carrying out our duties very well. The governor has already given us autonomy, and that has improved how we function at the grassroots,” he said.
Another local government chairman, who preferred not to be named, corroborated the claim, noting that councils in the state are experiencing a more enabling environment to operate.
He said the autonomy has allowed council officials to take decisions that reflect the priorities of their localities without bureaucratic delays.
