A political analyst has described the local government financial autonomy being promoted by President Bola Tinubu and the All Progressives Congress (APC) administration as a “scam,” alleging that state governors have continued to control funds allocated to Nigeria’s 774 local government areas.
According to him, despite the Supreme Court’s landmark judgment granting financial autonomy to local governments, there is still no effective system through which council chairmen receive their statutory allocations directly from the Federation Account.
He alleged that funds meant for local governments continue to pass through structures controlled by state governments, allowing governors to retain significant influence over the finances and operations of the third tier of government.
The claim comes amid growing concerns over the slow implementation of the Supreme Court’s July 11, 2024 judgment, which ordered the Federal Government to pay allocations due to local governments directly to democratically elected councils.
The Supreme Court, in the case of Attorney-General of the Federation vs Attorney-General of Abia State and 35 others, held that state governments had no constitutional authority to retain, spend or control funds standing to the credit of local governments. The court also declared the use of caretaker committees to administer local governments unconstitutional.
However, almost two years after the judgment, the practical implementation of financial autonomy remains unresolved.
Recent investigations found that local governments received about N10.48 trillion in Federation Account allocations between July 2024 and June 2026, yet there was still no clear evidence of nationwide compliance with the Supreme Court’s order that the funds be paid directly to the councils.
Another report published in May 2026, said local governments were allocated N1.46 trillion in the first quarter of 2026, but the money was still processed through the existing Federation Account distribution structure rather than being transferred directly to individual councils.
The man further criticised the conditions attached to the implementation of direct allocations, alleging that local governments were being subjected to difficult requirements, including the provision of bank accounts and tax-related documentation.
He specifically alleged that a three-year tax clearance requirement had become one of the obstacles preventing councils from opening the accounts required to receive funds directly.
He also alleged that the Federal Government has used the issue of local government allocations as a bargaining tool in its relationship with state governors, claiming that political negotiations between the Presidency and governors have allowed the old system to continue.
