The Association of Local Governments of Nigeria (ALGON) has filed a lawsuit against the Federal Government concerning the implementation of local government autonomy. The case, filed at the Federal High Court in Abuja under the reference FHC/ABJ/05/353/2025, seeks the inclusion of local government councils in the Federation Account Allocation Committee (FAAC).
The suit names several respondents, including the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi; the Minister of Finance, Wale Edun; the Minister of Budget and National Planning, Abubakar Bagudu; the Accountant-General of the Federation, and various other agencies such as the Revenue Mobilization, Allocation and Fiscal Commission, the Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC), commercial banks, and the 774 local government councils.
ALGON’s Secretary-General, Mohammed Abubakar, explained that the legal action was initiated to ensure that local governments receive direct disbursements from the federation, as mandated by the Supreme Court. In July 2024, the Supreme Court ruled that local government allocations must be paid directly to the councils, following a suit filed by the Attorney-General, Lateef Fagbemi, on behalf of the Federal Government.
The court ruled that the practice of state governments retaining local government funds was unconstitutional, stating that local government funds could either be paid directly to the councils or through states, but since payments through states had not been effective, direct payment was necessary.
Despite the Supreme Court ruling nearly eight months ago, the implementation has been delayed. The CBN has reportedly required all 774 local councils to provide two years of audited financial reports before they can receive direct allocations.
In the suit, ALGON is requesting a declaration that any attempt to disburse funds to local councils through commercial banks or other agencies, without the councils’ authorization, would be illegal. ALGON further seeks an order ensuring that no funds for local councils are disbursed without their direct involvement and representation in the allocation process, particularly at the Federation Account Allocation Committee (FAAC).
This legal move aims to secure the autonomy of local governments and ensure proper management of their finances, as the association presses for the implementation of the Supreme Court’s ruling.
