The Association of Local Governments of Nigeria (ALGON) has filed a lawsuit against the Federal Government and state governments over the implementation of local government autonomy. The suit, registered as FHC/ABJ/05/353/2025 at the Federal High Court in Abuja, seeks to ensure the inclusion of local government councils in the Federation Account Allocation Committee (FAAC) and direct disbursement of funds to local governments.
Joined as respondents in the suit are the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Budget and National Planning, Abubakar Bagudu; the Accountant-General of the Federation; the Revenue Mobilization, Allocation and Fiscal Commission; the Central Bank of Nigeria (CBN); the Nigerian National Petroleum Corporation Limited (NNPCL); commercial banks; and the 774 local government councils.
ALGON’s Secretary-General, Mohammed Abubakar, confirmed the legal action to *Saturday PUNCH*, stating that the move aims to enforce the Supreme Court’s July 11, 2024, judgment, which mandated direct payment of local government allocations from the federation account. The apex court had ruled that states’ retention of local government funds was unconstitutional and ordered that allocations be paid directly to local governments or through states, depending on what works best.
Despite the court’s ruling, local government autonomy has yet to be implemented nearly eight months later. Reports indicate that the CBN has required all 774 local governments to provide at least two years of audited financial reports before opening accounts for direct remittance of their allocations.
Abubakar emphasized the need for the court to issue an order ensuring local government representation in FAAC or any other body responsible for allocating funds. He described the delay in implementing the Supreme Court’s judgment as a setback to the development and autonomy of local governments.
The lawsuit underscores ALGON’s commitment to securing full financial autonomy for local governments, a move it believes will enhance grassroots development and governance across Nigeria.
This legal action follows a suit filed earlier by the Attorney-General of the Federation, Lateef Fagbemi, SAN, on behalf of the Federal Government, seeking to grant full autonomy and direct funding to all local government councils in the country.
As the case unfolds, stakeholders await the court’s decision, which could significantly impact the financial independence and operational capacity of local governments nationwide.
