Exactly one year after the Supreme Court ruled that Nigeria’s 774 local government areas must receive allocations directly from the Federation Account, state governors continue to flout the judgment, retaining control over N4.5 trillion meant for grassroots governance.

An investigation by Punch reveals that, from July 2024 to June 2025, the sum of N4.496tn representing 24.87 per cent of the N18.074tn shared among the three tiers of government was allocated to local councils but routed through state governments in violation of the apex court’s decision.

The July 11, 2024 ruling had declared it unconstitutional for state governments to receive and disburse LG funds.

In response, the Federal Government set up an inter-agency committee and directed the Central Bank of Nigeria (CBN) to open individual accounts for the LGs to enable direct funding. Yet, one year later, the judgment remains largely unenforced.

Despite monthly allocations ranging from N306.53bn in September 2024 to N434.57bn in February 2025, local governments are still deprived of financial independence, with state governors maintaining firm control over disbursements.

Meanwhile, legal luminaries, labour unions, and LG officials have accused governors of deliberately sabotaging the implementation of the ruling.

Human rights lawyer and Senior Advocate of Nigeria, Femi Falana, criticised the Federal Government’s inaction, saying: “The Central Bank asked LGs to open accounts, and they did.

“Then they were told to provide two years of audited reports. But how can councils produce audit reports for periods when they never directly handled funds?”

He blamed the Attorney General of the Federation, **Lateef Fagbemi (SAN), for not enforcing a judgment he once celebrated.

He said, “The Supreme Court’s judgments are binding on all persons and authorities. Non-compliance is nothing short of treason.”

Also, constitutional lawyer Prof. Mike Ozekhome (SAN) called the governors’ defiance a blatant affront to the rule of law.

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