State Governors Undermine Supreme Court Ruling on Local Government Financial Autonomy
Despite a landmark Supreme Court decision affirming the financial autonomy of local governments, state governors across Nigeria persist in exerting control over council funds, effectively sabotaging the implementation of the judgment and frustrating efforts to decentralize power. This defiance occurs even as local governments have received over N6.33 trillion in allocations over the past two years, with minimal visible development at the grassroots level.
Systematic Crippling of Local Governance
The funds, intended to drive development closest to the people, have been largely absorbed by executive and parliamentary conspiracies marked by interference, mismanagement, and weak accountability. State governors not only meddle with local government funds from federal allocations but also undermine state legislatures that should serve as checks on their excesses. Across Nigeria, the local government system has been systematically crippled by the very state executives meant to provide oversight and coordination.
Since the removal of the fuel subsidy, there has been a consistent upward trend in federally distributable revenue without corresponding development. The result is a deeply weakened local government system unable to deliver basic services, implement projects, or exercise its constitutionally guaranteed powers. Most council roads across urban and rural areas are practically impassable, worsening during rainy seasons when floods create craters and potholes, and wastewater from drainage percolates into roads, forming stagnant pools.
Financial Breakdown and Allegations of Misappropriation
In March 2026, the Federation Account Allocation Committee (FAAC) shared N1.894 trillion among the federal, state, and local governments from a pool of N2.230 trillion. The breakdown showed the federal government received N675.088 billion, states got N651.525 billion, while local government councils received N456.467 billion. However, in 2025, 18 elected council chairmen in Ondo State reported they still lack direct access to their funds, as allocations from FAAC continue to be routed through controversial state-local government joint accounts instead of council treasuries.
A council chairman alleged that councils are left with a paltry sum monthly to run their affairs, regardless of the billions disbursed to the state on their behalf. One chairman, who requested anonymity for fear of victimization, stated that none of the local governments received anything less than N400 million, but after deductions and directives regarding expenditures, they are left with just N4 million to run their councils. Council bosses voiced frustrations, lamenting that six months into their tenure, they have been unable to initiate any meaningful developmental projects due to financial restrictions.
An immediate former chairman of a local government in a North Central state confirmed that state governors are still emasculating councils financially, with chairmen given inadequate funds for developmental projects. He explained that the special adviser to the governor on local government handles salary payments, while only a small amount is allocated for running the chairman's office and that of councillors.
Missing Funds and Calls for Accountability
In Imo State, The Mazi Organisation (TMO) alleged that more than N330 billion accrued to local governments since 2020 is missing. The group claimed that funds from federal allocations, ecological funds, and international interventions have not translated into visible projects in the 27 LGAs. Spokesman Cajetan Duke noted that between 2020 and 2025, the 27 LGAs collectively received over N330 billion, with Mbaitoli receiving about N15.63 billion and Nkwerre, the lowest, receiving N10.75 billion, yet schools, health centers, sports facilities, and roads remain in scandalous decay.
The National President of ALGON, Bello Lawal Yandaki, emphasized that opening separate accounts for councils is essential for the total implementation of the Supreme Court's decision regarding direct fund allocations. He stated that the central bank is awaiting guidance from the federal government on this matter. Comrade Aliyu Haruna, National President of the National Union of Local Government Employees (NULGE), lamented the continued misappropriation of local government funds by state governors, who he said are primarily interested in maintaining absolute control over finances for personal discretion rather than grassroots development.
Legal Perspectives and Enforcement Challenges
Comrade Haruna stressed that Supreme Court rulings carry the force of law, and the President, as the nation's leader, must ensure their enforcement. He called for direct disbursement of funds to local governments in line with court directives to guarantee genuine development at the grassroots level. The Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), has warned of consequences for continued violation of the Supreme Court judgment on local government autonomy by governors.
Worst still, many governors have not been accountable following increased federal revenue allocations. Findings indicate that many follow a shared template for looting public funds. The Supreme Court's landmark ruling two years ago granted financial autonomy to local governments, affirming their right to direct allocations without state-level interference. However, rather than comply, several state governors have resorted to undermining implementation.
Although all states in Nigeria have elected council chairmen, governors continue to place their knees on the financial neck of those councils, an action that is not only unconstitutional but also a blatant disregard for the rule of law and fiscal transparency. Human rights activist and Abuja-based constitutional lawyer Okueyelegbe Maliki maintained that the Supreme Court judgment has settled the issue of local government autonomy with finality, describing obstruction as a culture of impunity that must be deprecated.
Another lawyer, Ajonye Omale, lamented non-compliance with the judgment, noting that the Supreme Court explicitly outlawed the diversion of local government funds through joint allocation accounts. He emphasized that any attempt by governors or state assemblies to delay or obstruct implementation violates the Constitution and the clear directive of the Supreme Court. Legal remedies include contempt proceedings against non-compliant governors, enforcement actions by the federal government, court orders compelling states to release funds, and public pressure to uphold constitutional democracy at the grassroots level.
Lawyer Monday Ikpe suggested that as the federal government continues its push for fiscal reforms and accountability, it must not only enforce the Supreme Court ruling but also ensure that governors who flout constitutional provisions are held accountable, even after their tenures. He stressed that the survival of Nigeria's democracy depends on empowering institutions at all levels, especially the third tier, where many citizens live and interact with the state.
