Autonomy battle: States defy Supreme Court, control N10tn LG allocations

Two years after a landmark Supreme Court ruling ordered the direct disbursement of federal allocations to local government councils, states in Nigeria are reportedly defying the judgment, effectively retaining control over these funds. Findings indicate that local governments have received a staggering N10.48 trillion in allocations within this period, yet the practical implementation of the court's decision remains stalled.

The Supreme Court's judgment, delivered on July 11, 2024, in a case involving the Attorney-General of the Federation and several state attorneys-general, mandated the Federal Government to pay allocations directly into the accounts of the 774 local government areas. Crucially, the ruling also prohibited state governments from withholding or spending funds designated for councils and declared the administration of local governments by unelected caretaker committees unconstitutional.

However, nearly two years post-ruling, significant questions linger regarding compliance. It remains unclear whether federal allocations are genuinely being transferred directly to council accounts, whether State Joint Local Government Accounts are still operational, and if local governments have gained tangible control over their finances. The PUNCH's analysis of Federation Account Allocation Committee reports reveals a sharp increase in allocations to councils in the second year after the judgment, rising from N4.496 trillion in the first 12 months to N5.984 trillion in the subsequent year.

This increase in funds, however, has not been accompanied by widespread evidence of compliance with the Supreme Court's directive or a visible improvement in grassroots service delivery. The ruling also aimed to end the practice of state governors appointing caretaker committees to run local governments, a move seen as undermining democratic processes. Despite the Supreme Court's clear stance against such committees, their continued use in many areas suggests a persistent disregard for the judgment.