LG Autonomy: Tinubu Moves to Enforce Local Government Autonomy, Targets FAAC Allocations
Abuja, Nigeria — In a dramatic escalation of Nigeria’s evolving local government autonomy crisis, President Bola Ahmed Tinubu has issued a stern warning to state governors that he may resort to an Executive Order forcing direct disbursement of Federation Account Allocation Committee (FAAC) funds to local governments should they continue withholding statutory allocations. This forceful stance underscores the Federal Government’s commitment to implementing a landmark Supreme Court ruling affirming financial independence for the third tier of government. [Source]
Here’s a detailed breakdown of the political, legal, and economic implications of Tinubu’s announcement, the context that led to this standoff, and what it means for Nigeria’s governance structure moving forward.
1. The Supreme Court Ruling on Local Government Autonomy: The Legal Basis
The drama surrounding local government autonomy in Nigeria has its roots in a July 11, 2024 Supreme Court judgment, which ruled that allocations from the Federation Account must be directly disbursed to the 774 Local Government Areas (LGAs) without state government interference. [Source]
This ruling dismantled the contentious “state joint account” system (mandated by Section 162(6) of the 1999 Constitution), where funds meant for LGs were pooled with state funds — often leaving councils underfunded. Instead, the apex court ordered the Accountant-General of the Federation to pay statutory FAAC allocations straight into designated accounts for each local council. [Source]
Legal significance:
- Reaffirms Nigeria’s federalism, recognizing local councils as a distinct government tier.
- Prevents governors from controlling or siphoning funds intended for grassroots development.
- Transforms the legal framework governing subnational public finance.
Despite the ruling, implementation has been slow due to resistance from some governors operating joint accounts. [Source]
For detailed background, see our explainer on Local Government Autonomy in Nigeria.
2. Tinubu’s Warning: Executive Order and Direct FAAC Allocations
At the APC National Executive Committee (NEC) meeting in Abuja, President Tinubu indicated that if governors continued resistance, he would issue an Executive Order mandating FAAC allocations to local governments be disbursed directly. [Source]
Tinubu’s viral metaphor highlighted the seriousness of his stance: “If you wait for my Executive Order… because I have the knife, I have the yam, I will cut it.”
Why It Matters
- Bypasses state control over LG allocations.
- Sets a precedent for federal enforcement of judicial decisions.
- Strengthens grassroots financial autonomy.
- Reduces opportunities for fund diversion via state legislatures.
Read our analysis on the Supreme Court’s judgment on LG autonomy.
3. Political Reactions from State Governors
Reactions from state executives have been mixed. Some governors resist the direct payment model, citing:
- Debt recovery obligations of local councils.
- Lack of administrative capacity at the grassroots.
- Potential mismanagement of unfiltered funds. [Source]
Analysts suggest this resistance partly aims to maintain influence over local political structures. For historical context on state control of LG funds, see our report on state joint accounts and their implications.
4. Support from Local Government Stakeholders
The Nigeria Union of Local Government Employees (NULGE) has urged enforcement of the Supreme Court ruling. [Source]
NULGE President-General, Comrade Aliyu Kankara, said non-enforcement violates the apex court’s order and undermines grassroots democracy.
For local voices, see our feature on LG chairmen’s perspectives on autonomy.
5. Economic and Governance Impacts of Direct FAAC Disbursement
Positive Impacts
- Strengthened Local Democracy: Empowers local elected officials and accountability to constituents.
- Transparency in Public Finance: Easier auditing and monitoring reduces diversion risks.
- Grassroots Development: Predictable funds enable essential infrastructure and social services.
Potential Challenges
- Administrative Capacity: Some councils lack trained personnel or robust systems.
- Fiscal Oversight: Direct funding could expose councils to misuse if oversight is weak.
See our analysis on LG autonomy and financial management in Nigeria.
6. Constitutional Amendment Prospects and Legislative Role
Section 162(6) of the Constitution mandates the state joint account system. Reform requires:
- Approval by 2/3 of state houses of assembly
- Passage by both chambers of the National Assembly [Source]
Governors are reluctant to support reforms diminishing fiscal authority. Federal lawmakers have signaled openness. Updates at Constitutional Reform Nigeria.
7. International Standards and Comparative Federalism
Fiscal decentralization is recognized as a key pillar of federalism. According to the World Bank, autonomous LGs deliver better public services and strengthen democracy.
Countries like Germany, Canada, and the United States implement direct local transfers as core practice. [OECD Source]
8. Civil Society and Public Opinion
Most civil society groups support enforcing local government autonomy. They argue this is necessary to break barriers hindering grassroots development. Some caution that councils must strengthen transparency and systems first.
Read public opinion at Nigeria Voices.
9. What Happens Next? Outlook & Future Developments
Possible scenarios include:
- Immediate Compliance: Some states may begin direct transfers.
- Presidential Executive Order: Tinubu may issue an order mandating direct FAAC disbursement.
- Legislative Reform: Efforts to amend Section 162(6) gain momentum.
- Strengthening LG Capacity: Programs to enhance local administration and transparency.
10. Conclusion
President Tinubu’s warning marks a critical point in Nigeria’s local government autonomy saga. Backed by a Supreme Court ruling and growing support from unions, civil society, and lawmakers, the push for direct FAAC allocations represents a potential shift in fiscal authority.
Whether through executive action, legislative reform, or voluntary compliance, Nigeria’s grassroots governance faces transformative change. Follow live coverage for ongoing updates.
