The Association of Local Governments of Nigeria (ALGON) and the National Union of Local Government Employees (NULGE) have formally declared their support for President Bola Ahmed Tinubu’s plan to mandate the direct deduction of council funds from the Federation Account.
The endorsement follows a stern warning from the President to state governors, urging full compliance with the landmark July 2024 Supreme Court ruling that granted financial autonomy to the nation’s 774 Local Government Areas (LGAs). Despite this judicial milestone, reports indicate that nearly 18 months later, state governments continue to manage council allocations through the controversial State Joint Local Government Account (SJLGA).
The Financial Disparity Analysis of Federation Account Allocation Committee (FAAC) data reveals that between July 2024 and December 2025, a staggering N7.43 trillion intended for local councils was routed through state-controlled structures. While council allocations surged by 42% year-on-year in 2025, reaching N5.35 trillion, stakeholders argue that these record revenues have yet to translate into tangible grassroots development due to continued state interference.
Stakeholder Reactions
ALGON: Secretary-General Muhammed Abubakar emphasized that the Supreme Court remains the highest authority in the land. “We fully support the President in taking whatever measures are necessary, including an Executive Order, to ensure the law is respected and funds reach their intended destinations,” Abubakar stated.
NULGE: Muhammad Yunusa, President of the Bauchi State chapter, described the proposed Executive Order as a “welcome relief” for local government workers. He noted that direct funding is the only way to ensure accountability and strengthen governance at the community level.
President Tinubu has signaled that he may be compelled to issue an Executive Order to bypass state-level delays, ensuring that the Central Bank of Nigeria (CBN) facilitates direct transfers to council accounts.
ALGON and NULGE call on all state governors to honor the rule of law and transition to the new financial framework immediately. The unions maintain that liberating the third tier of government is essential for national security, infrastructure development, and the overall welfare of the Nigerian people.
