The Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have strongly demanded the immediate implementation of direct deductions of local council funds from the Federation Account Allocation Committee (FAAC), fully endorsing President Bola Tinubu’s warning of an Executive Order against non-compliant state governors.
ALGON Secretary General Muhammed Abubakar emphasised support for Tinubu’s stance, delivered directly to governors during the APC’s National Executive Committee meeting, stating that the President’s threat is firmly rooted in the Supreme Court’s July 2024 judgment granting financial autonomy to local governments.
He expressed hope for voluntary compliance but affirmed that local government stakeholders would back any executive action to enforce the ruling.
NULGE chapters echoed these demands, with Bauchi State President Muhammad Yunusa describing a potential Executive Order as a “welcome development” that would honour local government workers and end years of fund diversion by states.
Yunusa highlighted the lingering non-implementation despite the apex court’s unanimous decision declaring state retention of council funds unconstitutional and invalidating caretaker committees.
In Kano, NULGE Chairman Ibrahim Muhammad expressed cautious optimism, commending the state for responsible fund use but calling for full adherence to direct allocations to enhance accountability and grassroots development.
Despite local governments receiving a record N5.35 trillion in 2025 – a 42 per cent increase from N3.77 trillion in 2024, with monthly peaks exceeding N529 billion – funds continue routing through state-controlled joint accounts, undermining the Supreme Court verdict 18 months on.
Stakeholders argue that higher revenues from oil and non-oil sources are not translating into improved services due to gubernatorial interference.