The Supreme Court judgment granting financial autonomy to the 774 local government areas in Nigeria marked one year on Friday, July 11. However, the federal government had yet to implement the Supreme Court judgment one year after its ruling.

This is because the federal government continued to channel the local government allocations through the state government. Analysis has shown that 36 state governors received N4.5 trillion from the President Bola Tinubu administration.

Governors retained LG control despite Supreme Court ruling

According to The Punch, the governors have retained control of the local government allocations, a development that directly defies the Supreme Court judgment that mandated the direct funding of the local governments.

On Thursday, July 11, 2024, the Supreme Court ruled that the local governments in Nigeria must be directly sent their allocations from the federation account, stating that the practice of sending the funds through the state government was not constitutional.

Following the apex court ruling, the federal government constituted an inter-agency panel to see to the implementation of the judgment. It also directed the Central Bank of Nigeria to open individual accounts for the 774 local governments in the country, a move that would orchestrate the direct disbursements.

FG failed to implement Supreme Court judgment

Largely, the process has not been implemented, and the funds have continued to pass through the state government, with disputes between the CBN, state and local government authorities and other relevant agencies.

While the percentage of the local government allocations was steady, ranging between 24 to 25 per cent for each of the months, the method of sharing has remained a breach to the Supreme Court judgment.

Data from the Federation Account Allocation Committee showed how the N4.5 trillion meant for the local governments between July 2024 to June 2025 was distributed through the state governments.

Below is the breakdown:

1. - July 2024 - N337.02bn

2. - August 2024 - N343.70bn

3. - September 2024 - N306.53bn

4. - October 2024 - N329.86bn

5. - November 2024 - N355.62bn

6. - December 2024 - N402.55bn

7. - January 2025 - N361.75bn

8. - February 2025 - N434.57bn

9. - March 2025 - N410.56bn

10. - April 2025 - N387bn

11. - May 2025 - N406.63bn

12. - June 2025 - N419.97bn