It’s been a year since the Supreme Court’s landmark judgment granting financial autonomy to Nigeria’s 774 local governments, but the ruling remains largely unimplemented. Despite the court’s directive for the Accountant General of the Federation to pay local government allocations directly, state governments continue to control the coffers.
The judgment, which aimed to enhance the efficiency of local governments, has been stalled due to bureaucracies and political maneuvering. An inter-ministerial committee set up to enforce the ruling has made little progress, with the Central Bank of Nigeria (CBN) introducing conditions that have further delayed implementation.
In August 2024, a three-month moratorium was agreed upon by federal and state governments over concerns bordering on salary payments of council workers and the need to conduct local government elections in some states. However, this temporary reprieve has turned into a prolonged delay, with critics accusing the federal government of lacking the political will to enforce the judgment.
The CBN’s directive requiring local governments to provide at least two years of audited financial reports as a prerequisite to receive their allocations directly has been met with resistance from local government associations. ALGON argues that this condition defeats the purpose of autonomy and amounts to a recentralization of power.
Over N3.408 trillion has accrued to local governments in the past year, but the funds were paid into joint accounts controlled by state governments. Stakeholders, including ALGON, NULGE, and civil society organizations, are urging the federal government to enforce the judgment and grant local governments true autonomy.
According to Aliyu Haruna Kankara, National President of NULGE, “We expect them to issue a circular or guidelines for local governments to come forward and open accounts, but up to this moment, there is no such thing.” Kankara also accused governors of frustrating the implementation of the court ruling, warning that if the federal government continues to delay, the union might embark on mass protests.
Lawyers and civil society organizations have also weighed in on the issue, with some attributing the delay to politicking and a lack of political will on the part of the federal government. Barrister Malachy Ugwumadu, a human rights lawyer, noted that “the beauty of the judgment has been compromised in the womb of Nigerian politics,” blaming the delayed implementation on pushback from state governors and a lack of strategy from the federal government.
As the 2027 elections approach, stakeholders are growing increasingly skeptical about the implementation of the Supreme Court judgment. Philip Jakpor, Executive Director of Renevlyn Development Initiative, believes that “if after a year the autonomy has not been implemented despite much talk, nothing will make it happen when the election approaches.”
The Nigeria Governors’ Forum has absolved state governors of any complicity, directing attention to the Secretary to the Government of the Federation-led committee for updates on the implementation process. However, Katsina State Governor, Dikko Umar Rada, has expressed support for local government autonomy, provided there are checks and balances in place.
The delayed enforcement of the Supreme Court judgment has sparked concerns about the federal government’s commitment to reforming governance at the grassroots level. As stakeholders continue to push for implementation, the fate of local government autonomy remains uncertain.