The National Union of Local Government Employees (NULGE) has expressed frustration over the continued non-enforcement of the Supreme Court judgment granting full financial autonomy to Nigeria's 774 local government councils, nearly two years after the landmark ruling.
Supreme Court Ruling Remains Unimplemented
Despite the Supreme Court's unambiguous directive in July 2024 that allocations from the Federation Account be paid directly to local governments, the practice of channeling funds through state governments persists across the country. NULGE accuses key federal agencies, including the Federal Ministry of Finance and the Office of the Accountant-General of the Federation, of impeding compliance and undermining the rule of law.
NULGE National President Aliyu Haruna-Kankara told The Guardian in Abuja that no concrete administrative framework has been established to operationalize the judgment. He stated that no circular has been issued directing local governments to open accounts with the Central Bank of Nigeria to receive allocations directly. He described claims that direct payments have commenced as misleading, noting that apart from isolated cases like Osun State, allocations are still routed through state structures.
Political and Bureaucratic Hurdles
The Supreme Court ruling, hailed as a watershed for fiscal federalism, affirmed local governments as a distinct tier of government and aimed to curb state control over their finances. However, nearly 22 months later, the promise remains unfulfilled due to bureaucratic inertia and political resistance. Stakeholders emphasize that coordinated administrative action from fiscal authorities is essential for implementation.
Haruna-Kankara stressed that clear guidelines, operational procedures, and enforcement mechanisms are needed to translate the judgment into practice. Without them, the system defaults to its old ways. He warned that continued delays could trigger industrial unrest, as NULGE, backed by the Nigeria Labour Congress and Trade Union Congress, is intensifying consultations and may resort to decisive action if government agencies fail to act.
Legal and Union Actions Underway
The union disclosed that efforts to seek further legal enforcement are underway, though only the Association of Local Governments of Nigeria (ALGON) has the legal standing to re-approach the apex court. NULGE noted that consultations with ALGON are ongoing and that both bodies are aligned on the issue.
The situation highlights a deeper governance challenge in Nigeria, where judicial pronouncements often struggle to overcome entrenched political and institutional interests. The delay in implementing a Supreme Court judgment of this magnitude sends a troubling signal about adherence to the rule of law. As pressure mounts on the Federal Government to act, the fate of local government autonomy, critical for grassroots development, remains uncertain.
