The Federal High Court in Abuja has adjourned until May 29 a suit filed by the Association of Local Governments of Nigeria (ALGON) against the Federal and State Governments over alleged non-compliance with a Supreme Court ruling granting financial autonomy to local councils.
The matter, scheduled for mention before Justice Inyang Ekwo on Monday, could not proceed as the court did not sit.
The suit, marked FHC/ABJ/CS/353/2025, was filed by the Registered Trustees of ALGON. It challenges the continued control of local government funds by federal and state authorities, despite a Supreme Court judgment on July 11, 2024, which upheld the financial autonomy of Nigeria’s 774 local councils.
ALGON is suing the Attorney-General of the Federation, the Federal Government, and 23 others, including the Minister of Finance, Central Bank of Nigeria (CBN), Accountant-General of the Federation, Minister of Budget and National Planning, state commissioners for finance, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Nigerian National Petroleum Company Limited (NNPC), several commercial banks, and one Bello Lawal.
The association argues that the defendants have failed to implement the Supreme Court’s ruling and continue to divert or manage funds meant for local governments without lawful authority or representation.
ALGON is asking the court to declare that:
- The 774 local councils must be represented at the Federation Account Allocation Committee (FAAC) meetings.
- Federal and state officials, along with financial institutions, lack the authority to disburse or manage local government funds without ALGON’s approval, based on the Supreme Court’s decision.
According to ALGON’s counsel, Okechukwu Uju-Azorji, commercial banks (listed as defendants 9 to 23) are allegedly positioning themselves to act as intermediaries for diverting local government allocations, contrary to the ruling.
However, the CBN, in a preliminary objection filed by Senior Advocate of Nigeria Sam Ologunorisa, urged the court to dismiss the case for lack of jurisdiction.
The apex bank argued that ALGON is not a constitutionally recognized entity and was not a party to the original Supreme Court case.
Similarly, FAAC’s counsel, Olawale Fapohunda, SAN, challenged ALGON’s legal standing, arguing the group lacks locus standi, thereby invalidating the court’s jurisdiction to hear the matter.
The state finance commissioners also opposed ALGON’s demands, stating that the law does not provide for local government representation in FAAC.
They cited Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982, which lists the FAAC’s statutory members and excludes local government representation.
In a counter-affidavit, ALGON maintained that it is a legally incorporated association, registered since May 10, 2002, with the mandate to defend and promote local government autonomy and interests in Nigeria.
The matter is now set for mention on May 29.
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