The Federal Government of Nigeria (FG) has restated its unwavering commitment to ensuring that Local Governments (LGs) keep their autonomy and are not undermined by any excessive meddling, particularly from state governments. This proclamation comes amid continuing discussions and obstacles surrounding the implementation of financial and administrative autonomy for the 774 Local Government Areas (LGAs) throughout the nation, a step largely viewed as crucial for grassroots development and democratic government.
Local governments in Nigeria have traditionally been acknowledged as the third tier of governance, after changes in 1976 that attempted to decentralize authority and bring governance closer to the people. Despite constitutional recognition, LGs have often been undermined by state governments, particularly governors who have controlled local government funds and appointments, effectively stifling their autonomy and capacity to deliver essential services such as healthcare, education, and infrastructure at the grassroots level.
Between 1999 and 2002, LGAs got their funds straight from the federal federation account. However, this direct financing was subsequently withdrawn, and governors obtained free access to local government finances, sometimes withholding resources and forming caretaker committees instead of having local elections. This condition led to significant dysfunction in local government, with many LGs unable to perform their duties efficiently.
A historic breakthrough happened on July 11, 2024, when the Supreme Court of Nigeria decided in favor of providing financial autonomy to all 774 local councils. The court highlighted that governors cannot dissolve local government councils or establish caretaker committees without compromising federal financing. This verdict underlined the constitutional standing of LGs as a separate tier of government entitled to direct access to their revenues.
The Federal Government, headed by President Bola Tinubu, has consistently backed this court ruling. The Attorney-General of the Federation and Justice Minister, Lateef Fagbemi (SAN), brought the lawsuit that resulted in the Supreme Court verdict, underlining the FG’s commitment to a functioning and independent local government system. Senator Sunday Karimi, representing Kogi West, stated that the FG and the National Assembly are completely behind the autonomy agenda, encouraging Nigerians to demand its full implementation.
Despite the Supreme Court’s ruling and the FG’s backing, the implementation of local government autonomy has met substantial challenges. Many state governments have rejected the verdict, seeking legislative and administrative ways to preserve control of LG funding. For example, some states have implemented legislation mandating local government allocations to be put into state-controlled joint accounts, essentially evading the court’s ruling.
Moreover, the Central Bank of Nigeria (CBN) has postponed the direct delivery of monies to LGAs, claiming the necessity for LG authorities to show two years of audited accounts before qualifying for direct disbursements. This criterion has been challenged as a loophole that permits governors to continue regulating local government budgets.
The outcome is a continual flow of about ₦4.5 trillion meant for local governments moving via state governments between July 2024 and June 2025, sustaining the financial dependency and weakness of LGs.
In response to these problems, the FG has constituted a 10-man inter-ministerial committee chaired by the Secretary to the Government of the Federation (SGF) to implement the Supreme Court verdict and ensure LG autonomy is respected. The group is entrusted with coordinating efforts across ministries and agencies, including working with the CBN to discover alternatives that avoid bureaucratic delays and loopholes.
Dr. Mohammed Bello Shehu, Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), has also underlined the Commission’s unflinching support for local government financial autonomy. He stressed that grassroots governance is crucial for national development and that the latest Supreme Court verdict is a triumph for the country. The RMAFC is re-establishing a committee of commissioners from each state to engage stakeholders and promote seamless implementation of the autonomy framework.
Local government autonomy is generally considered crucial for boosting democratic governance, increasing service delivery, and stimulating growth at the grassroots level. Autonomous LGs can better design and implement projects customized to local requirements, promote accountability, and stimulate civic involvement via mechanisms such as town hall meetings and public scrutiny.
However, the autonomy question extends beyond financial independence. It entails ensuring LGs have the administrative and regulatory authorities to rule successfully without excessive intervention from state governments. The National Assembly is encouraged to examine and eliminate constitutional limits that limit LG authority, therefore providing them complete administrative independence.
Civil society groups, legal entities like the Nigerian Bar Association, and other stakeholders are actively campaigning for the full fulfillment of local government autonomy. Initiatives include capacity development for local government councils, public education on LG obligations, and initiatives to improve grassroots accountability and openness.
The Nigerian Bar Association is holding discourses to advance the debate on local government financial autonomy, stressing the legal and governance problems and providing solutions to guarantee the Supreme Court verdict translates into actual changes on the ground.
While the FG has proven political resolve to protect local government autonomy, the pushback from several state governments remains a serious impediment. Senator Karimi underlined that the success of the autonomy agenda rests on Nigerians demanding its execution and keeping all levels of government responsible.
President Tinubu has publicly reiterated his administration’s commitment to local government autonomy, highlighting its role in promoting democracy and encouraging grassroots development. The FG’s approach reflects a determination to tackle difficulties and engage with all stakeholders to ensure that local governments are empowered to serve their people efficiently.
The Federal Government of Nigeria stays resolute on the concept that local governments must not be undermined but rather strengthened via true autonomy. The Supreme Court order providing financial autonomy to LGs is a key step toward decentralizing government and promoting grassroots development. However, the route to complete autonomy remains riddled with problems, especially owing to hostility from certain state governments and bureaucratic barriers.
To actualize the promise of autonomous local governments, the FG, in partnership with the National Assembly, civil society, and other stakeholders, must continue to implement the court’s judgment, address loopholes, and enhance the capacity of LGs. Only then can Nigeria’s local governments fulfill their constitutional purpose, enhance service delivery, and contribute effectively to national growth and democratic consolidation.
The FG’s pledge that it would not allow local governments to be weakened is a clear message that the period of LG financial and administrative slavery is coming to an end, ushering in a new chapter of empowered grassroots governance in Nigeria.
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