Two years after the Supreme Court ordered financial autonomy for Nigeria’s local governments, implementation of the landmark judgment remains uneven across the South-East, with states offering different accounts of how council funds are managed.
The Supreme Court, in its July 11, 2024 judgment, directed that allocations meant for democratically elected local government councils should be paid to them without state government interference. The court also ruled against state governments retaining council funds and prohibited the use of caretaker committees in place of elected councils.
However, developments in Ebonyi, Enugu, Anambra, Abia and Imo show that the question of who ultimately controls local government finances is yet to be fully settled.
Ebonyi: Chairmen insist funds are untouched
In Ebonyi State, Augustine Uburu, chairman of Ebonyi Local Government Area and former state ALGON chairman, said councils have been receiving their monthly allocations without interference from the state government.
According to him, the arrangement has existed since the administration of Governor Francis Nwifuru began, with council chairmen maintaining control over their funds.
Chief Ogodo Ali Nome, chairman of Ezza North Local Government Area, also said councils receive their allocations without the governor taking control of the money.
The opposition, however, disputes this position. PDP chieftain Moses Idika accused the state government of failing to respect the Supreme Court ruling, arguing that genuine financial autonomy is yet to be achieved.
Idika also questioned the level of development in rural communities despite the funds allocated to local governments, alleging that individuals close to the state government have accumulated significant wealth.
The state Commissioner for Local Government and Chieftaincy Matters, Uchenna Igwe, declined to comment on the allegations.
Enugu: Government says councils have control
In Enugu State, local government chairmen say the state government has respected the Supreme Court judgment.
Ugo Ferdinand Ukwueze, chairman of Igbo-Eze South and Deputy Chairman of ALGON in the state, said the government does not interfere with federal allocations meant for the 17 councils.
He said the relationship between the state and local governments should be viewed as cooperation rather than financial control, pointing to projects such as primary healthcare centres and Smart Green Schools as examples of collaboration.
Igbo-Etiti council chairman, Dr Eric Odo, similarly maintained that his council receives its share of federal allocations and uses the funds for projects covering healthcare, roads, water supply, ICT and social welfare.
But the Nigeria Democratic Congress disagrees. Its state secretary, Dr Sabastine Okafor, argued that the continued operation of the Joint Allocation Account Committee (JAAC) means the councils do not have complete control over their finances.
Okafor claimed that expenditure decisions are sometimes made before funds are distributed to the councils. He also alleged that local government resources are being used to support some state-backed programmes.
He called for stronger enforcement of the Supreme Court judgment and urged the Independent National Electoral Commission to ensure local government elections are conducted across the country.
Anambra adopts a different approach
Anambra State has taken a distinct position by backing its local government financial arrangement with legislation.
The state’s 2024 Local Government Law provides for allocations received by councils from the Federation Account to first enter the state’s joint local government account before being distributed.
Opposition parties have criticised the arrangement, arguing that it undermines the Supreme Court’s decision by giving the state government a role in controlling council funds.
Labour Party chairman Damian Ugoh described the law as an attempt to compel local government chairmen to return allocations to the state.
Governor Chukwuma Soludo, however, has defended the legislation. He argued that the Constitution allows state governments to make laws concerning local government administration and warned that completely unsupervised financial autonomy for all 774 councils could create serious administrative problems.
The state has also established an Economic Planning Board involving local government chairmen. The body determines how council resources should be directed toward areas such as salaries, education, healthcare and pensions.
Some lawmakers have also criticised the arrangement. Hon Henry Nigeria Mbachu, representing Awka South in the state House of Assembly, said the law could weaken local government independence.
Despite the controversy, the arrangement remains in place, with Anambra’s 21 councils operating under the law.
Abia: JAAC remains in use
In Abia State, the situation appears closer to the model that critics of the current system oppose.
An official from Bende Local Government Area said council allocations still pass through the state’s joint account system. Under the arrangement, the state is expected to contribute 10 per cent of its internally generated revenue before the funds are distributed among the councils.
The official alleged that the state has not consistently made the required contribution while continuing to oversee the distribution of council funds.
A council chairman from Abia South, who spoke anonymously, also confirmed that allocations are not paid directly to councils. However, he said the arrangement has enabled local governments to execute projects that would previously have been difficult to fund.
According to him, councils have undertaken road rehabilitation, street-lighting projects and youth empowerment programmes.
A senior official in the state’s Ministry of Local Government and Chieftaincy Affairs confirmed that JAAC is still operating, although he rejected claims that the state government was diverting council funds.
Meanwhile, Abia lawmaker Amobi Ogah criticised the continued control of local government resources by state authorities. He said the National Assembly and the Federal Government were working toward ensuring genuine financial independence for councils.
The state APC has also demanded greater transparency, backing a legal effort seeking access to the financial records and spending of the state’s 17 local government areas.
Imo: Former speaker says autonomy is only theoretical
In Imo State, former Speaker of the House of Assembly, Chief Ike Ibe, said local government financial autonomy remains largely theoretical.
He accused state governors and Houses of Assembly of creating mechanisms that allow them to retain influence over council finances.
According to Ibe, many councils struggle to finance basic operations despite receiving substantial monthly allocations from the Federation Account.
He argued that council chairmen should not have to seek approval from state authorities before carrying out routine projects or accessing funds meant for their communities.
The Imo State Government and ALGON had not responded to the allegations at the time of the report.
Former chairmen demand full implementation
Former elected local government chairmen have also criticised what they describe as the failure to fully implement the Supreme Court judgment.
National President of the National Association of Former Elected Local Government Chairmen of Nigeria, Shaba Ibrahim, said councils remain heavily dependent on state governors despite the court’s ruling.
Speaking in Ebonyi, Ibrahim argued that local governments cannot effectively perform their constitutional responsibilities without genuine financial and administrative independence.
He urged stakeholders to work together to ensure that the autonomy declared by the Supreme Court becomes a reality at the grassroots.
Two years later, controversy persists
The situation across the five South-East states suggests that the Supreme Court judgment has produced some changes, particularly the move away from caretaker administrations and toward elected councils.
However, the more contentious issue of financial independence remains unresolved.
While council chairmen in Ebonyi and Enugu maintain that their allocations are accessible without interference, opposition groups question whether mechanisms such as JAAC give state governments indirect control.
Anambra has gone further by establishing a legal framework that places council allocations within a joint state structure, a move strongly criticised by opponents but defended by Governor Soludo as necessary for coordinated development.
In Abia, officials acknowledge that the joint account system remains operational, while concerns about state control continue to dominate public debate. In Imo, critics maintain that councils remain financially dependent on the state government.
The continuing disagreement highlights the gap between the Supreme Court’s declaration of local government financial autonomy and how council finances are actually managed at the state level.
The effectiveness of the ruling may ultimately depend on stronger enforcement, greater transparency in local government accounts and continued legal and political efforts to determine who should have the final say over funds allocated to Nigeria’s grassroots councils.