The Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have strongly endorsed President Bola Tinubu’s plan to enforce direct financial allocations to local government councils.
This support comes despite a landmark Supreme Court ruling 18 months ago that granted financial autonomy to Local Government Areas (LGAs). Investigations reveal that state governments have continued to receive and control at least ₦7.43 trillion allocated to the 774 local councils between July 2024 and December 2025.
Backing for Presidential Action
President Tinubu recently warned state governors at an APC National Executive Committee meeting to comply with the Supreme Court’s verdict or face an executive order mandating direct deductions from the Federation Account Allocation Committee (FAAC).
ALGON’s Secretary General, Muhammed Abubakar, expressed full support for the move, stating, “We will all be in support of the president to go ahead with whatever threat he has made”. NULGE leaders in states like Bauchi have applauded the proposed order, seeing it as a welcome relief for grassroots workers.
State-by-State Reactions Show Mixed Compliance
· Nasarawa State: NULGE claims funds are still routed through the state ministry, while the state government insists LGAs have enjoyed full autonomy since 2019.
· Adamawa State: The ALGON chairman reported that Governor Ahmadu Fintiri directed councils to open CBN accounts, but bureaucratic delays have hindered the process.
· Kano State: NULGE expressed satisfaction with the current fund management by the state government but is optimistic about compliance with new directives.
· Kebbi & Jigawa States: Officials expressed willingness to implement the autonomy ruling, with Jigawa’s ALGON chairman stating the state government is already releasing funds.
A Long Road to Grassroots Empowerment
The Supreme Court’s July 2024 judgment declared it unconstitutional for state governments to retain or manage LGA funds. Despite this, the old framework of the State Joint Local Government Account remains in place, preventing direct access to the ₦529.95 billion monthly allocations recorded in October 2025.
The Nigeria Governors’ Forum spokesperson stated that governors would respond appropriately after meeting with the President.
Disclaimer:
This report is based on investigations and statements from involved parties. The implementation of direct allocations remains subject to further executive and intergovernmental actions. CDA News Nigeria is an independent digital news platform.
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