Local Government Autonomy Delay: Who’s Pocketing Nigeria’s Grassroots Billions?

N525Billion

Exactly one year after the Supreme Court ruled that local governments must receive their funds directly, Nigerians are still being served vague ‘we-are-still-working-on-it’ excuses, deepening the trust gap between citizens and their government.

Development Diaries reports that despite numerous press releases and committee meetings, not a single kobo has landed directly in local government accounts from Abuja, according to a recent Punch report.

It is understood that a staggering N4.5 trillion meant for the 774 local governments between July 2024 and June 2025 still passed through state governors.

Yes, the apex court might have ruled, but Nigerian governors, ever the masters of selective hearing, simply blinked, adjusted their agbadas, and carried on as usual.

Let’s break it down. Each month, about 24-25 percent of the Federation Account Allocation goes to local governments.

But instead of arriving at their destination (the actual local government accounts), these funds continue to be routed through the state governments, who often behave like jealous older siblings deciding how much pocket money the youngest child deserves.

What are the implications? This very grassroots arm of governance, which is the one closest to the people, remains starved of cash and responsibility.

And what does this mean for the ordinary Nigerian? It means the broken borehole in your village might remain broken. It means the local primary school down your street with a leaking roof will continue to double as a swimming pool when it rains.

It means the community health care centres might still lack basic drugs and qualified staff. In other words, local problems remain unsolved because local governments lack the power, and the funds, to act.

For example, in Benue State, north-central Nigeria, local government chairmen claim that despite the federal allocation of over N385 million per council per month, the state gives them just ten million as ‘security vote’.

That’s like giving someone a mansion and then locking all the rooms except the pantry. Meanwhile, not even a culvert has been constructed in many of these councils.

It is not just Benue.

In Kano, Kwara, and Gombe, also located in northern Nigeria, local councils have not even opened the required accounts with the Central Bank of Nigeria (CBN).

Some say it is because of bureaucratic bottlenecks. Others point fingers at vested interests that benefit from the current opaque system.

One insider even claimed that some officials of the Nigeria Union of Local Government Employees (NULGE) and local government chairmen are dragging their feet because the lack of direct funding allows them to dodge financial scrutiny.

It is a chorus of excuses, with accountability lost in the noise.

So, who is to blame? To start with, the state governors. That’s becauser they continue to view local government funds as an extension of their state budget. Next is the federal government, which appears too timid or too complicit to enforce its own legal victory.

Recall that the Attorney General and Minister of Justice, Lateef Fagbemi, celebrated the court ruling like a World Cup win. And yes, even the local governments themselves are to blame. Many of them are too comfortable playing subservient to their state overlords.

Section 287 of the constitution states clearly that Supreme Court judgments must be obeyed. But here we are, 12 months in, and the judgment has become just another PDF gathering dust.

What’s the way forward?

First, the federal government, through the attorney general, must stop pretending that forming committees is the same as taking action. Enforce the judgment by using the instruments of law and policy to compel compliance. If that fails, name and shame non-compliant states publicly and legally.

Second, local governments must wake up. If you have been handed autonomy and you refuse to open a CBN account, the people you serve must ask you why.

And third, citizens must not stay silent. Ask questions at town halls. Demand accountability from your local government chairman, and write to your state houses of assembly.

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