President Bola Tinubu has issued a final warning to state governors, threatening to invoke an Executive Order to bypass state control and send funds directly to the 774 Local Government Areas (LGAs).
This ultimatum, delivered on December 22, at the APC National Executive Committee meeting, comes exactly 18 months after the July 2024 Supreme Court ruling that declared state control over council finances, unconstitutional.
Despite that ruling, data shows that between July 2024 and December 2025, state governments retained control over at least ₦7.43 trillion in council allocations, as bureaucratic bottlenecks and political resistance continue to stall the full implementation.
For decades, governors have controlled council funds through the State Joint Local Government Account, which the Supreme Court nullified in July 2024. While the court ordered direct payments to councils, the transition has been plagued by delays.
The major bottlenecks include a three-month moratorium granted in late 2024, requiring councils to open Central Bank of Nigeria (CBN) accounts, and a controversial demand for two years of audited financial reports from LGAs. Some states like Anambra and Osun, have even passed new local laws, to maintain administrative oversight, which political experts see as a move to bypass the apex court’s judgment.
Total council allocations spiked by 42% year-on-year, rising from ₦3.77tn in 2024 to ₦5.35tn in 2025, but the funds are still being routed through state-controlled structures.
Both ALGON (Association of Local Governments of Nigeria) and NULGE (National Union of Local Government Employees) have fully backed the threat of the president, stressing that financial autonomy is the only way to ensure grassroots development and the welfare of workers.
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