Tinubu warns governors: Executive Order looms on Local Government financial autonomy

By Johnson Arua 

President Bola Tinubu on Friday warned state governors that he may be compelled to issue an Executive Order to ensure direct allocations to local governments if they continue to ignore a Supreme Court ruling affirming the financial autonomy of Nigeria’s third tier of government. 

The President issued the warning during the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC) at the State House Conference Centre in Abuja. 

Reiterating his position from Thursday’s 14th National Caucus meeting, Tinubu emphasized that local government autonomy cannot exist without a funded mandate. He stressed that non-compliance may leave him no choice but to direct funds from the Federation Account Allocation Committee (FAAC) straight to the councils. 

Addressing NEC members, including governors, National Working Committee officials, and other party leaders, the President stated, “The Supreme Court has capped it for you again, saying, ‘give them their money directly.’ If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it.” 

He added, “I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, FAAC after FAAC you will see.” 

Tinubu’s warning comes after the landmark July 11, 2024, Supreme Court judgment, which upheld the Federal Government’s suit enforcing financial independence for local governments. 

The seven-member panel ruled unanimously that it is unconstitutional for state governments to withhold or manage funds intended for local councils. 

The apex court mandated direct payment of allocations from the Federation Account to local governments, as provided under Section 162(5-8) of the 1999 Constitution (as amended). The practice of pooling local government funds through joint accounts, widely adopted by most states, was declared illegal. 

“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” Tinubu emphasized, reiterating the need for immediate compliance to avoid federal intervention.