President Bola Tinubu has warned state governors that he may invoke an executive order to compel direct disbursement of funds to local governments.
The president gave the warning on Friday at the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC) held at the State House Conference Centre in Abuja.
Tinubu also warned that strict measures would be enforced if the governors continue to disregard the Supreme Court’s ruling granting financial autonomy to the third tier of government.
“The Supreme Court has capped it for you again, saying, ‘give them their money directly.’ If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it,” Tinubu said.
“I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, FAAC after FAAC you will see.
“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment.”
Recall that on July 11, 2024, the Supreme Court judgment upheld the federal government’s case seeking to secure financial independence for local councils.
In its unanimous ruling, the seven-member panel of the court declared it unconstitutional for state governments to withhold or administer funds allocated to local governments.
The court consequently ordered that allocations from the federation account be paid directly to local councils in line with Section 162(5–8) of the 1999 Constitution as amended, a provision long undermined through the operation of joint accounts.