President Bola Tinubu on Friday warned state governors that he may be compelled to issue an Executive Order to ensure direct allocations to local governments if they fail to comply with a Supreme Court ruling affirming financial autonomy for Nigeria’s third tier of government.
The president delivered the warning during the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC) held at the State House Conference Centre in Abuja, attended by governors, National Working Committee members, and other party leaders.
Mr Tinubu had earlier sounded a similar warning at the APC’s 14th National Caucus meeting on Thursday, emphasising that local government autonomy cannot be achieved without a funded mandate.
Reiterating his earlier directive, the president said non-compliance by state governments could force the federal government to directly release funds to local councils through the Federation Account Allocation Committee (FAAC).
“The Supreme Court has capped it for you again, saying, ‘give them their money directly,’” Mr Tinubu told NEC members. “If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it. I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, FAAC after FAAC you will see.”
The president’s remarks follow the landmark Supreme Court ruling of 11 July, 2024, which upheld a federal government suit seeking to enforce financial independence for local governments. In a unanimous decision, a seven-member panel declared it unconstitutional for state governments to retain or manage funds meant for local councils.
The court ordered that allocations from the Federation Account be paid directly to local governments, as provided under Section 162 (5–8) of the Constitution.
Despite the ruling, many state governments have continued to channel local government funds through joint accounts, a practice the apex court deemed unlawful.
Mr Tinubu stressed the importance of compliance, warning that continued violations could trigger federal intervention.
“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” he said, underlining the administration’s commitment to enforcing local government financial autonomy.
