Autonomy Battle: States Still Control ₦10.48tn LG Allocations Despite Supreme Court Judgment
Nearly two years after the Supreme Court ordered the direct payment of federal allocations to Nigeria’s 774 local government councils, implementation of the landmark judgment remains largely stalled, with state governments still controlling council funds despite ₦10.48 trillion being allocated to local governments within the period.
An analysis of Federation Account Allocation Committee (FAAC) reports, using data from the National Bureau of Statistics and the Office of the Accountant General of the Federation, showed that local governments received ₦10.479 trillion between the July 2024 and June 2026 FAAC meetings. The allocations covered revenue generated between June 2024 and May 2026.
The allocations followed the Supreme Court’s July 11, 2024 judgment in the suit between the Attorney General of the Federation and the Attorney General of Abia State and 35 others, which directed the Federal Government to pay allocations directly into the accounts of the 774 local government councils. The apex court also barred state governments from withholding or spending local government funds and declared the administration of councils by unelected caretaker committees unconstitutional.
Despite the judgment, findings indicate that implementation has remained uneven, with many states continuing to operate the State Joint Local Government Account system. Questions also persist over whether councils now have direct access to their allocations and practical control of their finances.
The analysis showed that allocations to local governments increased significantly during the review period. Councils received ₦4.496 trillion between July 2024 and June 2025, while allocations rose to ₦5.984 trillion between July 2025 and June 2026, representing an increase of ₦1.488 trillion, or 33.1 per cent. Monthly allocations also rose from an average of ₦374.65 billion to ₦498.67 billion.
However, the increase in allocations has not translated into clear evidence of compliance with the Supreme Court ruling or noticeable improvements in grassroots development. The continued operation of joint accounts has fuelled concerns among stakeholders that state governments still exercise substantial control over local government finances.
The National Union of Local Government Employees (NULGE) said the Federal Government had yet to commence direct payment of statutory allocations to local government councils. NULGE National President, Aliyu Kankara, said the union had repeatedly written to the Federal Government, urging it to implement the judgment.
“Nothing has changed. Until the allocations go directly to the local governments as ordered by the Supreme Court, we cannot say financial autonomy has been implemented,” Kankara said.
Investigations across several states, including Kaduna, Kano, Benue, Plateau, Sokoto and Abia, showed that local governments were still largely operating under the joint account arrangement, with council officials alleging that state governments determine how much is eventually released to them, regardless of the amounts approved by FAAC.
In Kaduna, Kano and Plateau states, officials confirmed that local governments had yet to receive allocations directly from the Federation Account. In Benue and Sokoto, council officials also maintained that financial autonomy remained largely theoretical, while Abia officials said the Federal Government was yet to provide clear implementation guidelines despite councils operating independent bank accounts.
Jigawa emerged as a notable exception. The Chairman of the Association of Local Governments of Nigeria (ALGON) in the state, Sibu Abdullahi, said all 27 local government councils now receive their allocations directly from the Federal Government without deductions by the state government. He added that the councils operate independent bank accounts, a development he said had improved transparency and accelerated grassroots service delivery.
Overall, FAAC shared ₦42.709 trillion among the Federal Government, state governments, local governments and oil-producing states during the 24-month period. Of the total, the Federal Government received ₦14.620 trillion, state governments received ₦14.506 trillion, local governments got ₦10.480 trillion, while oil-producing states received ₦3.103 trillion as 13 per cent derivation revenue.
Despite the sharp increase in allocations, stakeholders insist that financial autonomy for local governments will remain unrealised until the Supreme Court judgment is fully implemented and councils gain unrestricted access to their statutory allocations.