Morganable Politics/Governance
Despite the substantial inflows, uncertainty continues to trail the implementation of the Supreme Court judgment delivered on July 11, 2024, in the case between the Attorney-General of the Federation and the Attorneys-General of the 36 states
kaNo —
Nearly two years after the Supreme Court ordered the direct payment of federal allocations to local government councils, implementation of the landmark judgment on local government autonomy remains stalled across many states.
Findings by Punch, basedd on an analysis of the Federation Account Allocation Committee data, as well as figures from the National Bureau of Statistics and the Office of the Accountant-General of the Federation, revealed that local government councils received N10.479tn between the July 2024 and June 2026 FAAC meetings.
Despite the substantial inflows, uncertainty continues to trail the implementation of the Supreme Court judgment delivered on July 11, 2024, in the case between the Attorney-General of the Federation and the Attorneys-General of the 36 states.
Supreme Court Orders Direct Payment Of Local Govt Funds
It also barred state governments from withholding or managing council funds and declared the use of unelected caretaker committees to run local governments unconstitutional.
However, nearly two years later, key questions remain unresolved, including whether allocations are now paid directly to councils, whether the State Joint Local Government Account system has been dismantled, and whether local governments have gained practical control over their finances.
Data reviewed showed that allocations to councils rose significantly in the second year following the judgment, but the increase has not translated into clear evidence of nationwide compliance or improved service delivery at the grassroots.
Consequently, the average monthly allocation to councils increased from N374.65bn in the first 12-month period to N498.67bn in the second period, marking a rise of N124.02bn.
A breakdown of the figures showed that in the first year, councils received N337.02bn in July 2024, N343.70bn in August, and N306.53bn in September. Allocations climbed to N329.86bn in October and N355.62bn in November, before peaking at N402.55bn in December.
In 2025, councils received N361.75bn in January, followed by N434.57bn in February. The figure declined to N410.56bn in March and N387bn in April, before rising again to N406.63bn in May and N419.97bn in June.
Allocations reached N529.95bn in October, before dropping slightly to N505.80bn in November and N445.27bn in December.
In 2026, councils received N513.27bn in January, N537.88bn in February, N456.47bn in March, and N468.83bn in April. The figure rose to N540.15bn in May and moderated slightly to N534.28bn in June.
Joint Account Slows Implementation
Despite these increases, stakeholders say the persistence of the State Joint Local Government Account system remains a major obstacle to genuine financial autonomy for councils.
The joint account arrangement, created under Section 162 of the 1999 Constitution, allows funds meant for local governments to be channelled through accounts controlled by state governments.
For years, council officials, labour unions, and civil society organisations have accused state governments of making deductions from these funds and controlling how they are spent, often leaving local councils underfunded and unable to provide basic services.
However, the slow pace of implementation has raised concerns that the financial relationship between states and councils remains largely unchanged in many parts of the country.
The impact of the lingering dispute is evident in several communities, where residents continue to demand improved infrastructure and public services despite rising allocations.
Oriire LGA Calls For Improved Security
In Oriire Local Government Area of Oyo State, for instance, residents have renewed calls for better security and infrastructure following the recent release of abducted schoolchildren and teachers in the area.
Community members are demanding functional police stations, improved telecommunications networks to facilitate emergency communication, better-equipped healthcare centres, standard educational facilities, and motorable roads.
The situation has reignited questions about how local government funds are managed, with many residents wondering why essential services remain inadequate despite years of substantial FAAC allocations.
While some residents blame state governments for allegedly retaining control over council funds, others argue that both state and federal authorities share responsibility for ensuring development at the grassroots level.
Beyond local government allocations, FAAC data showed that a total of N42.709tn was shared among the three tiers of government and oil-producing states as derivation revenue within the 24-month period.
The Federal Government received N14.620tn, accounting for 34.23 per cent of the total allocation. State governments received N14.506tn, representing 33.96 per cent.
Local government councils accounted for N10.480tn, equivalent to 24.54 per cent, while oil-producing states received N3.103tn as 13 per cent derivation, representing 7.27 per cent of the total.
The Federal Government’s share rose from N5.911tn in the first 12 months to N8.709tn in the second year, reflecting an increase of N2.798tn or 47.34 per cent.
State governments’ allocations increased from N6.169tn to N8.337tn, representing a growth of N2.168tn or 35.14 per cent.
Meanwhile, derivation payments to oil-producing states rose modestly from N1.505tn to N1.598tn, an increase of N93.13bn or 6.19 per cent.
Overall, total allocations to all beneficiaries increased from N18.081tn in the first year to N24.628tn in the second year, representing a rise of N6.547tn or 36.21 per cent.
However, analysts note that rising allocations alone do not necessarily translate to improved governance or development outcomes, particularly in the absence of full financial autonomy for local governments.
As debates over local government independence continue, observers say the true test of the Supreme Court judgment lies not in the volume of funds disbursed, but in whether councils can exercise real control over their resources and deliver tangible improvements in the lives of citizens at the grassroots level.
