Exactly one year after the Supreme Court ruled that allocations to the 774 local government areas should be paid directly from the Federation Account, the Federal Government continues to route funds through state governments, analysis by The PUNCH reveals.
Despite the July 11, 2024 ruling—which declared the practice of passing council funds through states unconstitutional—state governors have retained control over N4.496 trillion in local government allocations between July 2024 and June 2025, accounting for roughly 24.9% of the N18.074 trillion shared across federal, state, and local tiers.
Although the Federal Government set up an inter-agency implementation committee and directed the Central Bank of Nigeria to open individual CBN accounts for every local government council, the actual process has stalled, plagued by disputes and delays among key stakeholders.
Officials from several states—including Gombe, Kwara, Kano, Bayelsa, Benue, Nasarawa, Bauchi, Jigawa, and Adamawa—confirmed that many LGAs have yet to open CBN accounts or receive direct allocations. While some, like Adamawa, have acted ahead of the court’s decision, most remain non-compliant.
Constitutional lawyers, including SANs Mike Ozekhome, Femi Falana, and Adedayo Adedeji, sharply criticised both federal and state governments for ignoring the Supreme Court’s clear mandate. They accused governors of deliberately undermining grassroots autonomy and called for political will to enforce the ruling. Others, like Itse Sagay (SAN), argue a constitutional amendment is needed to align the Supreme Court ruling fully with existing law.
