The Supreme Court yesterday expressed dissatisfaction with the Federal Government’s failure to implement its July 2024 judgment directing that local governments’ share of the federation account be paid directly to them.
The apex court noted that there was “no credible evidence before it that the Attorney General of the Federation (AGF) had initiated or completed the needed modalities to give effect to its judgment” in the case of AG of the Federation and AG of Abia State and others, and urged the authorities to commence implementation of the decision immediately.
“In the instant suit, the decision of this court in the case of AG of the Federation and AG of Abia State and others is binding on the defendant, who is to ensure that it is complied with,” Justice Mohammed Idris said in his lead judgment.
The statement came during proceedings in a suit filed by the Osun State Government, through its Attorney General, seeking to compel the AGF to release withheld allocations due to local governments in the state. The Supreme Court, however, struck out the suit.
In a split decision of six-to-one, the Court held that the AG of Osun State lacked the locus standi to file the suit on behalf of the local governments, which are independent legal entities capable of asserting their rights in court.
In the lead majority judgment for SC/CV/773/2025, Justice Idris explained that the plaintiff failed to establish a cause of action that could invoke the Supreme Court’s original jurisdiction under Section 232(1). He noted that the case concerned the alleged failure of the Federal Government to release funds standing to the credit of Osun State Local Governments in the Federation Account.
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“The plaintiff failed to establish that the subject of the suit constituted a dispute between Osun State and the FG to have clothed the state’s AG with the necessary locus standi to approach the Supreme Court,” he stated.
Justice Idris distinguished this case from AGF v. AG Abia and others, in which the Supreme Court ordered direct payment of allocations to local governments across the federation.
He emphasised that any suit relating to disputes over local government funds must be filed by the affected local governments themselves, or by the state’s AG with the authorisation of the concerned LGAs.
“Just as the Federal Government cannot interfere in the affairs of the states, being the second tier of government, the state government equally lacks the constitutional authorities to interfere in the affairs of the Local Government councils, which are autonomous bodies created by the Constitution,” Justice Idris stated.
He further explained that local governments, even when cooperating with states, act as autonomous entities, holding “inherent authorities to conduct their affairs without interference from any tier of government, including the collection and management of revenues accruing to them.”
“This, no doubt, implies that the ownership of funds allocated to the Local Government councils from the Federation Account reside exclusive with the councils. The Constitution does not envisage any form of joint ownership between the states and the Local Government councils. It is the democratically elected Local Government council officials, and not the state government, that possess the legitimate authorities to control such funds,” he said
Justice Idris also rejected the AGF’s claim that Osun State was in contempt of the Supreme Court’s judgment in the AGF v. AG Abia case, insisting instead that it is the AGF, and by extension the Federal Government, that has failed to implement the ruling.
