It has been almost two years since Nigeria’s Supreme Court made a major decision about how money for local governments should be handled. On July 11, 2024, the court said statutory allocations meant for the country’s 774 local government councils must be paid straight into their own accounts. The goal was to stop the old system where funds passed through State Joint Local Government Accounts before reaching the councils.
At the time, people across the country celebrated. The judgment was seen as a big win for grassroots governance. The idea was simple: if councils get their money directly, they can fix roads, run clinics, pay teachers, and respond faster to community needs. Accountability would improve because citizens would know exactly what their local government received and spent.
Fast forward to today. The numbers show that a lot of money has gone to local governments. But the reality on the ground tells a different story.
More Than ₦10 Trillion Has Gone To Councils
Between July 2024 and June 2026, records from FAAC disbursements show that local government councils received about ₦10.48 trillion in total.
Break it down and the increase is clear. In the first 12 months after the judgment, councils got roughly ₦4.5 trillion. In the next 12 months, that jumped to almost ₦6 trillion. That is a year-on-year rise of more than 33 percent.
The jump came from better revenue collection overall and larger distributions from the federation account to all tiers of government. So on paper, local governments have more money than ever before.
But drive through many towns and villages and you will still hear the same complaints. Roads are bad. Primary health centers lack drugs and staff. Public schools need repairs and furniture. Clean water is scarce in some areas. Security remains a problem in rural communities.
If ₦10.48 trillion has been allocated, where is the impact?
Direct Payment Is Still Not Happening Everywhere
The Supreme Court was clear: pay the money directly. Yet reports from many states show that most councils are still not getting allocations on their own.
In practice, many local governments still wait for state governments to release their funds. In some places, a council chairman cannot start a project without getting approval from the state. Budgets are still being reviewed at the state level. And the State Joint Local Government Account, the very system the court wanted to end, is still operating in many states.
For years, groups like labour unions, civil society organizations, and local government officials have argued that this joint account arrangement weakens councils. When a state controls the purse, the council cannot plan properly. Projects get delayed. Priorities get shifted. And citizens at the grassroots end up with little to show for the money meant for them.
Workers Union Says It’s Still Just On Paper
The National Union of Local Government Employees, NULGE, says financial autonomy is mostly theoretical right now.
According to the union, many states have not started paying allocations directly into council accounts, despite repeated calls for full implementation. NULGE argues that real independence will only come when councils receive their money straight from the federation account, with no middleman.
The union believes this would change things. With direct access to funds, councils could budget better, execute projects on time, and be held accountable by the people who elected them. Service delivery at the grassroots would improve.
Some States Are Moving, Others Are Not
Implementation has not been the same across the country.
In states like Kaduna, Kano, Benue, Plateau, Sokoto and Zamfara officials and council leaders say they are still operating under state-controlled financial arrangements. Council chairmen in these states reportedly still need state approval before they can spend on major projects.
But there are exceptions. Jigawa is one state where local government officials say direct payments from the federation account are already landing in individual council accounts. Officials there say this has made things more transparent. Councils can respond faster when a community needs a borehole, a classroom, or emergency repairs.
That difference between Jigawa and other states shows that it is possible. It also raises questions about why other states have not followed.
Communities Are Asking Questions
The issue of council autonomy has become more urgent because Nigerians at the grassroots are demanding better services.
People want motorable roads to take farm produce to market. They want health centers that actually have nurses and medicines. They want schools with roofs and teachers. They want security and basic infrastructure.
With allocations rising sharply, many citizens feel they should be seeing visible changes. The argument is straightforward: more money should mean better living conditions.
Development experts agree. They say local government is the tier closest to the people. If it works well, primary education, healthcare, sanitation, rural roads, and agriculture will improve. But that can only happen if councils have both administrative and financial independence.
Federal Government’s Implementation Process Is Still Ongoing
After the Supreme Court ruling, the Federal Government set up an inter-ministerial committee. The committee’s job was to work out the procedures for paying allocations directly. It involved key institutions like the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, the Federal Ministry of Finance, and the Office of the Attorney-General.
The idea was to sort out legal and administrative issues so that direct payments could begin nationwide.
But nearly two years later, stakeholders say the process is still not complete. Full implementation has not happened across all states. Analysts say what is needed now is stronger political will, better coordination among agencies, and strict compliance with the court’s judgment.
Why This Matters For Nigeria’s Future
Governance experts keep saying the same thing: local government is where development touches people’s daily lives.
If councils are empowered, they can fix a broken culvert before it becomes a major flood problem. They can employ local health workers. They can support small farmers with inputs. They can maintain primary schools so children don’t have to sit on the floor.
As Nigeria continues to talk about constitutional reforms and restructuring, local government autonomy will remain a central issue. The debate is no longer just about law. It is about results.
For many Nigerians, the Supreme Court judgment will only be successful if they can feel it. The measure is not the ₦10.48 trillion figure in FAAC reports. The measure is whether their road got graded, whether their clinic has drugs, whether their children have a decent classroom.
Right now, there is a gap between allocation and impact. Closing that gap means finishing the work the court started. It means paying councils directly, letting them control their budgets, and holding them accountable to the people.
Until that happens, grassroots communities will keep waiting for the promise of local government autonomy to become real.