Local councils push for direct funding as states keep N7.43tn allocations
President Bola Tinubu is facing mounting pressure from local government associations and unions to enforce direct funding for councils, bypassing state governments. Despite a Supreme Court ruling on July 11, 2024, which mandated financial autonomy for local governments, most states continue to control council funds. Local government leaders support Tinubu’s threat to issue an executive order if governors fail to comply. The issue has sparked debate nationwide, with some states pledging compliance and others lagging behind.
What we know
- Local government associations and unions back Bola Tinubu’s plan for direct FAAC deductions to councils, citing the Supreme Court’s decision on July 11, 2024.
- States have received at least N7.43tn meant for local governments between July 2024 and December 2025, with most funds still routed through state accounts.
- Tinubu warned governors to comply with the court ruling or face an executive order enforcing direct allocations.
- Some states claim they already grant autonomy, while others admit the process remains unimplemented or delayed.
- The ongoing dispute raises concerns about grassroots development and accountability, despite increased revenue allocations in 2025.
