BREAKING: State Stalls LG Financial Autonomy 2 Years After Supreme Court’s Order

BREAKING: State Stalls LG Financial Autonomy 2 Years After Supreme Court’s Order

Naijaonpoint Nigeria reports that Despite N10.48 trillion being allotted to the third tier of government during that time, the implementation of the historic financial autonomy ruling has stalled two years after the Supreme Court ordered the direct payment of federal allocations to local government councils, according to findings by The PidomNigeria

An analysis of Federation Account Allocation Committee reports, with data from the National Bureau of Statistics and the Office of the Accountant-General of the Federation collated by The PidomNigeria on Monday, showed that local government councils received N10.479tn between the July 2024 and June 2026 FAAC meetings.

The period covered allocations from revenue earned between June 2024 and May 2026 because FAAC distributes the revenue generated in a particular month at the meeting held in the following month. Consequently, June 2024 revenue was shared at the July 2024 meeting, while May 2026 revenue was distributed in June 2026.

The allocations were made amid lingering uncertainty over the implementation of the Supreme Court judgment delivered on July 11, 2024, in the case of the Attorney-General of the Federation v. Attorney-General of Abia State and 35 others, with suit number SC/CV/343/2024.

The apex court ordered the Federal Government to pay allocations standing to the credit of the 774 local government areas directly to their accounts. It also barred state governments from retaining or spending funds allocated to councils and declared the administration of local governments by unelected caretaker committees unconstitutional.

However, nearly two years after the ruling, questions remain over whether federal allocations are being transferred directly to council accounts, whether State Joint Local Government Accounts are still operating and whether local governments have gained practical control over their finances.

The PidomNigeria analysis showed that allocations to councils rose sharply in the second year after the judgment, but the increase has not been matched by clear evidence of nationwide compliance with the ruling or a visible transformation in grassroots service delivery.

Between July 2024 and June 2025, local government councils received N4.496tn. The amount increased to N5.984tn between July 2025 and June 2026, representing an additional N1.488tn or a year-on-year increase of 33.10 per cent.

The average monthly allocation to councils consequently rose from N374.65bn in the first 12-month period to N498.67bn in the second, an increase of N124.02bn.

In the first period, councils received N337.02bn in July 2024 from June revenue, N343.70bn in August, N306.53bn in September, N329.86bn in October, N355.62bn in November and N402.55bn in December.

The monthly allocation stood at N361.75bn in January 2025, rose to N434.57bn in February, declined to N410.56bn in March and fell further to N387bn in April. It recovered to N406.63bn in May and N419.97bn in June 2025.

In the second 12-month period, councils received N444.85bn in July 2025, N485.04bn in August and N522.23bn in September.

The allocation subsequently rose to N529.95bn in October before declining to N505.80bn in November and N445.27bn in December.

Councils received N513.27bn in January 2026, N537.88bn in February, N456.47bn in March and N468.83bn in April. The amount climbed to N540.15bn in May before moderating slightly to N534.28bn in June.