The Federal Government of Nigeria has disbursed N4.5 trillion to local government councils across the country in the one year since the Supreme Court granted financial autonomy to the 774 local government areas (LGAs).
The announcement, made on July 10, 2025, comes despite an ongoing standoff between the federal government and state governors over the implementation of the landmark ruling.
According to a statement from the Ministry of Finance, the funds were allocated through the Federation Account Allocation Committee (FAAC) to support grassroots development and service delivery.
The disbursements, covering July 2024 to June 2025, were intended to empower LGAs to independently manage projects in education, healthcare, infrastructure, and security, as mandated by the Supreme Court’s July 2024 decision.
The apex court had ruled that local governments should receive their allocations directly from the federal government, bypassing state-controlled joint accounts.
This was aimed at ensuring financial independence for LGAs and curbing alleged mismanagement by state authorities. However, several state governors have resisted the ruling, citing constitutional and administrative concerns, leading to delays in full compliance.
A senior official in the Ministry of Finance, speaking on condition of anonymity, confirmed that the N4.5 trillion was transferred directly to LGA accounts to align with the Supreme Court’s directive.
The funds are expected to address critical needs, including the rehabilitation of primary schools, construction of rural roads, and provision of clean water in underserved communities.
The Attorney General of the Federation, Lateef Fagbemi, SAN, reiterated the government’s commitment to enforcing the autonomy ruling.
“The disbursements reflect President Bola Tinubu’s dedication to strengthening local governance and ensuring resources reach the grassroots,” Fagbemi stated during a press briefing in Abuja on July 10.
Despite the federal government’s efforts, some local government chairmen reported challenges in accessing the funds due to bureaucratic hurdles and ongoing legal disputes with state governments.
The Association of Local Governments of Nigeria (ALGON) has called for clearer guidelines to streamline the process and ensure transparency in fund utilization.
The disbursements mark a significant step toward empowering local governments, though the standoff with state governors remains unresolved.
The federal government has urged all stakeholders to comply with the Supreme Court’s ruling to foster development at the grassroots level.
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