Local government councils in Nigeria have intensified their demand for direct funding from the Federation Account, rejecting the continued control of their allocations by state governors.
The renewed agitation comes amidst revelations that the 774 local government areas in the country were allocated a total of N7.43 trillion between July 2024 and December 2025.
Despite this massive inflow, the funds have reportedly remained under the control of state governments, in defiance of a landmark Supreme Court judgment granting financial autonomy to the third tier of government.
President Bola Tinubu recently weighed in on the crisis, issuing a stern warning to state governors to comply with the Supreme Court ruling or face federal intervention.
Speaking at the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC) in Abuja, the President used a vivid metaphor to describe his executive powers.
“The Supreme Court has capped it for you again, saying, ‘give them their money directly.’ If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it,” Tinubu declared.
He cautioned that continued non-compliance would force him to bypass the state governors entirely and ensure that funds are transferred directly from the Federation Account Allocation Committee (FAAC) to the council chairmen.
The current standoff stems from the July 11, 2024, judgment by the Supreme Court, which declared it unconstitutional for state governments to retain or manage funds meant for local councils.
The apex court also outlawed the use of caretaker committees, affirming that only democratically elected officials should manage council resources.
However, 18 months after the ruling, implementation remains stalled. Investigations by The PUNCH revealed that the controversial State Joint Local Government Account (SJLGA) system is still in operation in many states.
This mechanism allows governors to pool local government funds with state revenues; a practice critics argue is used to siphon resources and cripple grassroots development.
Data from the Federation Account Allocation Committee (FAAC) highlights the scale of the funds at stake. Following the removal of fuel subsidies and other economic reforms, revenue accruals to the three tiers of government have surged.
In the second half of 2024 alone, local councils were allocated N2.08 trillion. This figure rose sharply to N5.35 trillion for the full year of 2025, representing a 42 percent increase year-on-year.
Despite these record allocations, the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) argue that the financial boost has not translated into improved service delivery because the councils do not have direct access to the cash.
Both ALGON and NULGE have thrown their weight behind the President’s threat to enforce direct payments.
In an interview, the Secretary-General of ALGON, Muhammed Abubakar, described the President’s stance as a necessary step to save the local government system from total collapse.
“This matter has been on for a long time. Even after the Supreme Court passed its judgment last year, up till today it has not seen the light of the day,” Abubakar stated, noting that full financial independence is the only path to strengthening governance at the grassroots level.
Former council chairmen have also voiced their support. Musa Illiyasu Kwankwaso, a former chairman of Madobi Local Government in Kano State, noted that despite his former council now receiving over N1 billion in allocations, there are few visible projects on the ground due to state interference.
As the standoff continues, all eyes are on the Presidency to see if the “knife” of an Executive Order will indeed be used to slice the “yam” of federal allocations directly to the councils.
culled from Daily Times Nigeria
