Govs get N4.5tn LG funds one year after Supreme Court ruling

Exactly one year after the Supreme Court granted full autonomy to the 774 local government areas, the Federal Government has continued to channel allocations through state governments.

An analysis by The PUNCH shows that state governors retained control of council allocations totalling N4.5tn, defying the landmark judgment that mandated direct funding to local governments.

On July 11, 2024, the apex court ruled that local governments must receive their allocations directly from the Federation Account, describing the long-standing practice of routing the funds through state governments as unconstitutional.

In response, the Federal Government constituted an inter-agency panel to oversee the implementation of the ruling and directed the Central Bank of Nigeria to open individual accounts for each of the 774 local government councils across the country to facilitate direct disbursements.

However, one year after the judgment, findings by The PUNCH show that the process remains largely unimplemented.

Local government allocations have continued to pass through state governments amid delays and disputes between the Central Bank, state governments, local government authorities, and other relevant agencies.

An analysis of data from the Federation Account Allocation Committee reveals that between July 2024 and June 2025, the sum of N4.496tn was disbursed to local government councils.

This represents 24.87 per cent of the N18.074tn shared among the three tiers of government over the 12-month period.