ALGON drags FG, states to court over local govt funding, autonomy

ALGON drags FG, states to court over local govt funding, autonomy

The Association of Local Governments of Nigeria (ALGON) has filed a lawsuit against the Federal Government, seeking to enforce local government autonomy and secure their inclusion in the Federation Account Allocation Committee (FAAC).

The case, marked FHC/ABJ/05/353/2025, was filed at the Federal High Court in Abuja. The suit names several respondents, including the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu; and the Accountant-General of the Federation.

Other respondents listed are the Revenue Mobilization, Allocation and Fiscal Commission, the Central Bank of Nigeria, the Nigerian National Petroleum Corporation Limited, commercial banks, and all 774 local government councils.

Confirming the legal action, ALGON’s Secretary-General, Mohammed Abubakar, explained that the lawsuit aims to compel direct disbursements to local governments, in line with the Supreme Court’s decision.

The Supreme Court, in a ruling delivered on July 11, 2024, mandated that local government allocations be paid directly to councils. The decision followed a suit filed by the Attorney-General of the Federation, Lateef Fagbemi, SAN, who argued for full autonomy and direct funding for all local governments.

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Justice Emmanuel Agim, who delivered the court’s judgment, declared:
“The demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay local government allocations directly to the LGs or through the states. In this case, since payment through states has not worked, the justice of this matter demands that LG allocations from the federation account should henceforth be paid directly to the LGs.”

Despite the ruling, the implementation of direct allocation has been delayed. Reports indicate that the Central Bank of Nigeria required all local councils to present at least two years of audited financial reports before receiving direct payments, further stalling the process.

Frustrated by the delay, ALGON approached the court to demand representation for local governments in FAAC and other bodies involved in fund distribution.

The association asked the court to declare any fund disbursement through commercial banks or third parties, without the local councils’ authorization, as unlawful.

Their requests to the court include:
A declaration that the 1st to 8th defendants cannot disburse funds to local governments via the 9th to 23rd defendants or any other party, without ALGON’s approval and due diligence.

A declaration that discussions, approvals, and disbursements of local government funds — including at FAAC meetings — cannot occur without local government representation.

ALGON also requested an injunction preventing the defendants from continuing indirect fund disbursements, insisting on local government involvement in the allocation process.

ALGON drags FG, states to court over local govt funding, autonomy

(PUNCH)