By Erewunmi Peace

The Supreme Court of Nigeria has again cautioned the Federal Government over its failure to fully implement the Court’s earlier judgment mandating direct allocations to local government areas (LGAs).

The reminder came during the Court’s ruling on a suit filed by the Osun State Government, which challenged the Federal Government for withholding funds meant for LGAs in the state. Although the apex court struck out the case on the grounds that the Osun Attorney-General lacked the legal standing to sue on behalf of local councils, the Justices used the opportunity to reiterate the validity and binding nature of their earlier judgment on local government fiscal autonomy.

Court Reaffirms Its 2024 Decision

In July 2024, the Supreme Court ruled that allocations from the Federation Account must be paid directly to the 774 local government councils, bypassing state governments. The ruling was expected to put an end to decades of complaints over state governors’ control of LG funds.

However, more than a year after the judgment, implementation across the country has been slow and inconsistent.

While striking out the Osun case, the Court expressed displeasure over the Federal Government’s delay in fully enforcing the 2024 decision.

According to the Justices, “a judgment of the Supreme Court is final and must be obeyed by all authorities.”
They reminded the Federal Government that the directive on direct disbursement to LGAs remains binding and should be implemented without further delay.

The renewed warning from the Supreme Court increases pressure on the Federal Government to ensure that local governments receive their funds directly, a step seen by many as critical for grassroots development, accountability, and strengthening local governance.