Local government councils across Nigeria are intensifying their long-running push for financial autonomy as fresh legal developments and frustrations over delayed reforms bring renewed urgency to the debate over grassroots funding and governance.
Local authorities have criticised state governments for retaining control over allocations that the 774 councils are constitutionally entitled to receive directly from the Federation Account. According to recent figures, at least N7.43 trillion meant for local governments between July 2024 and December 2025 was paid into state-level structures under the controversial State Joint Local Government Account system, rather than being released straight to the councils. Critics argue this practice weakens local governments, impedes service delivery and runs counter to legal rulings affirming financial independence for the third tier of government.
The stance of local government associations aligns with a landmark Supreme Court decision of 11 July 2024, which declared that it is unconstitutional for state governments to withhold or manage funds meant for local councils and that direct payment from the federation account should be the norm. The apex court also ruled that states cannot dissolve elected local councils in favour of caretaker committees, emphasising the constitutional recognition of local governments as an independent tier.
Despite the clear judicial directive, implementation has lagged. President Bola Tinubu has repeatedly urged state governors to honour the Supreme Court ruling and allow funds to flow directly to councils. At recent national party meetings, he warned that failure to comply might force him to issue an executive order to ensure direct remittances from the Federation Account Allocation Committee (FAAC) to council chairmen, bypassing state control.
Local government bodies such as the Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have thrown their weight behind the president’s call for enforcement. ALGON’s Secretary-General, Muhammed Abubakar, described the struggle for financial autonomy as essential to strengthening grassroots governance. He said that even after the Supreme Court’s ruling, councils had not seen the practical benefits of direct funding and that only full implementation could help restore effective local administration and development.
The frustration is not just about principle but also about practical challenges on the ground. With billions of naira allocated each month and little visible impact on infrastructure, basic services and poverty reduction, opponents of the status quo argue that retained funds at the state level are one of the key reasons why communities see limited progress. Council leaders and local government workers have voiced concerns that despite surging allocations to all three tiers of government, the inability to access funds directly has blunted local governments’ capacity to deliver on education, healthcare, rural infrastructure and sanitation.
In a related development, a Federal High Court ruling in Abuja has added legal momentum to the autonomy argument by granting all 774 local government councils the right to access Universal Basic Education Commission (UBEC) intervention funds directly, without passing through State Universal Basic Education Boards (SUBEBs). The judgment, delivered by Justice Emeka Nwite, struck down parts of the Universal Basic Education Act that had channelled these funds through state boards and held that local governments are constitutionally autonomous, not extensions of state governments. Under the new order, councils that meet statutory requirements can apply on their own to UBEC for basic education funding, and Local Government Education Authorities (LGEAs) will now answer to their local governments rather than SUBEBs.
The court also directed the UBEC to notify all SUBEBs and LGEAs nationwide about the ruling by mid-January 2026 in order to ensure consistent implementation. This decision is seen by many local government advocates as a major stride towards unlocking stalled education funding and removing state-level bottlenecks.
Legal experts and policymakers note that the twin pressures of court decisions and growing public demand are reshaping the landscape of local governance in Nigeria. The autonomy debate now spans constitutional interpretation, fiscal federalism and grassroots development strategy. Whether federal and state authorities can bridge political differences and operationalise the court’s orders remains the central question for many communities. As councils push for direct access to revenue and education grants, the spotlight is on federal institutions and state governors to reconcile legal mandates with governance realities.
