Nigerian states defy Supreme Court ruling on local government financial autonomy, control N10.48tn allocations

Local government councils received N10.48tn between July 2024 and June 2026, yet state governments continue to control these funds, defying the Supreme Court's directive to pay allocations directly to the 774 local government areas and prohibiting states from retaining or spending these funds. The ruling also declared the administration of local governments by unelected caretaker committees unconstitutional. Despite a significant increase in allocations to councils in the second year after the judgment, there is little evidence of nationwide compliance or improved grassroots service delivery.

The National Union of Local Government Employees NULGE confirmed that the Federal Government has not yet begun direct payments to local governments, with states still receiving these allocations. While officials in Kaduna, Kano, Benue, Plateau, and Sokoto states indicated that the old financial arrangements, including joint accounts, persist, Jigawa State claims its 27 local government areas are now receiving direct allocations from the Federal Government without state-level deductions. This uneven implementation highlights ongoing concerns about local government financial independence and development.