Olushola Omogbehin
President Bola Tinubu has issued warning to state governors in Nigeria of his readiness to issue an Executive Order to enforce direct allocations to local governments, should they fail to comply with a recent Supreme Court ruling that affirmed financial autonomy for Nigeria’s third tier of government.
He gave this warning on Friday during the 15th National Executive Committee, NEC meeting of the All Progressives Congress, APC, at the State House Conference Centre, Abuja.
This call by the president is significant in the ongoing struggle for financial autonomy at the grassroots level as it showed the readiness of Federal Government to bypass state executives who continue to strangle local administration resources.
Without mincing words, the President addressed the defince of some governors against the Supreme Court’s July 2024 judgment, which clearly granted financial independence to the nation’s 774 local councils.
Declaring as unconstitutional for state governments to withhold, control, or manage funds meant for the third tier of government, the court mandated that such monies be paid directly from the Federation Account.
Tinubu who addressed the leadership of the party – governors, lawmakers, and key stakeholders, reminded them that. “The Supreme Court has capped it for you again, saying, give them their money directly.”
Warning them further, the president said “If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it.”
He further said, “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 was sequel to the July 11, 2024, judgment by the Supreme Court that ruled in favour of the Federal Government’s suit seeking to enforce financial independence for local governments.
A seven-member panel of the apex court had in a unanimous decision declared that it is unconstitutional for state governments to retain or manage funds meant for local councils.
The court therefore ordered the direct payment of allocations from the Federation Account to local governments, a practice provided for in Section 162(5-8) of the 1999 Constitution (as amended) but generally disobeyed by most state governments through joint accounts.
Tinubu’s warning suggested that he may soon direct the Federation Account Allocation Committee (FAAC) to bypass state accounts entirely and crediting local councils directly without the intermediary role governors have long exploited.
