One year after the Supreme Court of Nigeria ruled that allocations to the country’s 774 local government areas must be paid directly from the federation account, state governors have continued to defy the judgment—retaining control of over ₦4.5 trillion meant for grassroots development.
The ruling, which was expected to end decades of financial strangulation and manipulation of local government administrations by state executives, has seen little to no implementation in most states. Despite a clear directive from the Central Bank of Nigeria (CBN) for local governments to open and operate independent accounts, the majority still run under joint accounts controlled by state governments.
Labour unions and some Senior Advocates of Nigeria (SANs) have expressed outrage over the continued breach, describing it as a calculated undermining of constitutional democracy. They blame both state governors and federal authorities for the lack of political will to enforce the court’s decision.
In Adamawa State, authorities claim they are fully compliant with the Supreme Court ruling, with direct payments already being made to all local government accounts. However, this appears to be the exception rather than the rule.
States like Benue, Kano, Rivers, and several others continue to operate joint accounts, with local council chairmen often reduced to figureheads, lacking both financial autonomy and administrative independence. This persistent centralization has hampered development at the grassroots and deepened calls for true federalism.
Legal experts have warned that the governors’ disregard for the ruling sets a dangerous precedent and constitutes a gross violation of the Constitution. “This is judicial sabotage,” said a constitutional lawyer who spoke under anonymity. “If the Supreme Court judgment can be ignored with impunity, what hope is left for the rule of law?”
There are growing calls for the federal government and the National Assembly to urgently intervene, not only to uphold the integrity of the Supreme Court but also to protect the future of local governance in Nigeria. Many argue that without decisive action, local governments will remain cash-strapped and incapable of delivering the basic services expected of them.
As the ₦4.5 trillion question lingers, the fate of true grassroots development and democratic accountability hangs in the balance.