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News

LG Chairmen Sabotage Financial Autonomy as FG’s Reform Effort Faces Setback

Oluwadara Akingbohungbe
By Oluwadara Akingbohungbe
Published: March 8, 2025
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The federal government’s renewed push to enforce the financial autonomy granted to local governments by the Supreme Court is facing significant resistance from council chairmen across the country. Despite the ruling on July 11, 2024, which affirmed the autonomy of local governments, the implementation of this decision has been stalled due to opposition from local leaders.

Following the Supreme Court’s verdict, the federal government established a committee to oversee the execution of the judgment. The committee submitted a series of recommendations aimed at ensuring compliance with the court’s ruling. However, between December 2023 and February 2024, the federal government’s attempts to implement these measures through the Federal Account Allocation Committee (FAAC) were met with resistance, leaving the process in limbo.

The Supreme Court’s decision was widely celebrated as a step toward strengthening grassroots governance and ensuring that local governments have direct access to their allocated funds. This move was expected to enhance service delivery and development at the local level. However, the reluctance of council chairmen to relinquish control over finances has created a major roadblock.

Sources close to the matter reveal that many local government chairmen are opposed to the autonomy, fearing it would reduce their influence and control over resources. This resistance has frustrated the federal government’s efforts to comply with the court’s directive and has raised concerns about the future of local government administration in Nigeria.

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The federal government remains committed to enforcing the Supreme Court’s ruling and has vowed to explore all legal and administrative avenues to ensure compliance. However, the ongoing standoff highlights the challenges of implementing reforms in a system where entrenched interests often clash with progressive policies.

As the impasse continues, stakeholders are calling for dialogue and cooperation between the federal government and local government chairmen to resolve the issue. The successful implementation of financial autonomy is seen as crucial to improving governance, accountability, and development at the grassroots level. Until then, the fate of local government autonomy remains uncertain, leaving many Nigerians questioning when—or if—the benefits of the Supreme Court’s ruling will ever materialize.

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TAGGED:36 state governorsFederal Account Allocation Committee (FAAC)FGLG ChairmenMinistry of Financeoffice of the accountant general
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