The Supreme Court of Nigeria (SC) yesterday voiced strong displeasure at the failure of the Federal Government of Nigeria (FG) to implement its July 2024 ruling directing that allocations from the federation account be paid directly to the country’s 774 Local Government Councils (LGs).
The court lamented that there was “no credible evidence” that the Attorney General of the Federation (AGF) had taken the required steps to give effect to that judgment, and ordered immediate compliance.
In a lead judgment delivered by Justice Mohammed Idris, the court struck out a suit filed by the Osun State Government alleging that the FG withheld LG funds.
The court ruled that the State lacked legal standing (locus standi), since LGs are constitutionally autonomous entities and must sue in their own name or authorise their state-level attorneys.
The ruling reaffirmed that under the constitution, LGs are separate legal entities with the right to manage their own finances independent of state governments.
Justice Idris stressed that the FG bears the constitutional duty to operationalise the judgment, including creating dedicated accounts for all 774 LGAs, and to remit all outstanding allocations without further delay.
Meanwhile, the court’s lone dissenting justice, Justice Emmanuel Agim, argued that the Osun State AG did have the right to bring the case, citing continued violations of the earlier ruling.
The decision has already drawn praise from the Association of Local Governments of Nigeria (ALGON), with the Osun chapter lauding it as a “victory for democracy, good governance and the common man.”
As federal and state authorities now face renewed pressure to comply, many hope the ruling will strengthen grassroots governance and bring overdue funds to local administrations.
