The Supreme Court has granted financial autonomy to the 774 local government councils in Nigeria, ordering the Federal Government to immediately start direct payments to their exclusive accounts.

In a landmark judgment, Justice Emmanuel Agim criticized the decades-long refusal of state governments to grant financial autonomy to local governments. He emphasized that only democratically elected local government administrations are entitled to these funds, dismissing the objections of the state governors.

The court directed that local government allocations from the Federation Account be paid directly to them, bypassing state government control. Justice Agim noted that retaining these funds by state governors disrupts local government activities and ordered immediate compliance with the judgment.

This ruling follows increased calls for local government autonomy and support from President Bola Tinubu. In May, the Federal Government, represented by the Attorney-General of the Federation, Lateef Fagbemi, sued the 36 state governors over alleged mismanagement of local government funds. The Federal Government currently receives 52.68% of the monthly revenue, states receive 26.72%, and local governments receive 20.60%, managed by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

Justice Agim reaffirmed the AGF’s right to protect the constitution, thus ensuring financial autonomy for local governments.