In a significant development in the ongoing quest for local government autonomy in Nigeria, the 774 local government areas, under the umbrella of the Association of Local Governments of Nigeria (ALGON), are set to face off with the Federal Government, state governments, and several financial institutions in court on Tuesday, April 16, 2025.
The suit, marked FHC/ABJ/CS/353/2025, will be heard at the Federal High Court in Abuja and seeks to enforce the July 11, 2024 Supreme Court ruling that granted financial autonomy to the local councils. The case pits ALGON against a host of powerful defendants, including the Attorney General of the Federation, the Minister of Finance, the Central Bank of Nigeria (CBN), the Accountant-General of the Federation, the Minister of Budget and National Planning, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigerian National Petroleum Company Limited (NNPCL), and 15 commercial banks.
At the heart of the suit is ALGON’s demand for a legal injunction restraining any disbursement of funds to local governments without its prior approval and oversight. ALGON argues that the July 2024 Supreme Court ruling empowers local councils to take full control of their financial resources, ending years of alleged financial strangulation by state governments.
In the originating summons filed by its legal team led by Okechukwu Uju-Azorji, ALGON insists that, going forward, all disbursements to LGAs must pass through a vetting and approval process coordinated by ALGON to ensure transparency and prevent fund diversion. It also demands representation of LGAs at the Federation Account Allocation Committee (FAAC), a powerful committee that determines revenue allocation among Nigeria’s three tiers of government.
According to ALGON Secretary-General, Mohammed Abubakar, the legal action is a continuation of the group’s push to operationalize the Supreme Court’s autonomy judgment. “We are simply seeking the court’s protection to ensure the judgment is implemented faithfully and that local governments regain their financial independence,” he said.
However, the move has sparked fierce resistance from the defendants. The CBN, in its preliminary objection dated March 24, 2025, contends that ALGON is not a statutory entity and lacks the legal capacity to initiate the lawsuit. Represented by senior advocate Sam Ologunorisa (SAN), the apex bank argued that ALGON was neither a party to nor a beneficiary of the referenced Supreme Court ruling.
“The plaintiff is a non-governmental organisation and cannot dictate how the CBN operates within the framework of the CBN Act 2007,” Ologunorisa said, urging the court to dismiss the suit for lack of jurisdiction.
Similarly, the Federal Ministry of Finance, represented by Olawale Fapohunda (SAN), joined the call for the case to be struck out. He emphasized that local governments are not recognized members of FAAC under existing statutes, particularly Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982.
“The plaintiff is attempting to enforce rights that do not exist in law,” Fapohunda submitted. He further described ALGON’s claims as “academic, conjectural, and a waste of judicial time.”
Adding to the legal intrigue, 15 commercial banks named as defendants have also filed objections. ALGON alleges that these banks are maneuvering to act as “conduit pipes” through which local government allocations could be siphoned off without accountability. The group seeks a judicial bar on any such transactions without its involvement.
In its response, ALGON submitted a counter-affidavit asserting its legal right to sue. It stated that the association was legally incorporated on May 10, 2002, with a constitutionally backed mandate to protect the interests of local governments. The group also accused the 24th defendant of falsely claiming to be ALGON’s president, a claim it described as fraudulent and unconstitutional.
ALGON supported its claims with documents from the Corporate Affairs Commission, hoping to affirm its legitimacy in court and continue its legal battle.
This case is shaping up to be a landmark in Nigeria’s federal governance system. If ALGON succeeds, it could pave the way for a more independent and accountable local government system—a long-standing demand of many governance reform advocates. However, failure could reinforce the status quo, where state governments exert considerable control over local finances.
Observers say the case could redefine the relationship between Nigeria’s three tiers of government, particularly around revenue sharing and administrative autonomy. It also highlights the growing use of the judiciary as an avenue to resolve critical governance challenges in the country.
As the nation awaits the outcome, many will be watching closely to see whether the courts will side with grassroots governance or uphold the entrenched control of state institutions.