President Bola Tinubu has warned state governors that he may issue an Executive Order to enforce direct allocation of funds to local governments if they fail to comply with a recent Supreme Court judgment affirming financial autonomy for the third tier of government.
Tinubu issued the warning on Friday while addressing the 15th National Executive Committee (NEC) meeting of the All Progressives Congress (APC) at the State House Conference Centre, Abuja.
In a veiled but stern remark directed at governors accused of withholding statutory allocations meant for local councils, the President cautioned that continued non-compliance could compel the Federal Government to directly disburse local government funds from the Federation Account Allocation Committee (FAAC).
Addressing NEC members, including APC governors, members of the National Working Committee and other party leaders, Tinubu said the Supreme Court had made its position clear on the matter.
“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,” the President said.
He added that while he had chosen to exercise restraint, persistent violations would not be tolerated. “I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, fact after fact, you will see,” he warned.
Tinubu’s remarks followed the July 11, 2024, landmark judgment of the Supreme Court, which ruled in favour of the Federal Government in its suit seeking to enforce financial independence for local governments.
In a unanimous decision, a seven-member panel of the apex court declared it unconstitutional for state governments to retain or manage funds allocated to local councils. The court ordered that allocations from the Federation Account be paid directly to local governments, as provided under Sections 162(5–8) of the 1999 Constitution (as amended), a provision largely undermined by the operation of state–local government joint accounts.
Reiterating the need for strict compliance with the judgment, Tinubu stressed that respect for the rule of law was non-negotiable.
“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” he said.
The President’s warning has further intensified the debate on local government autonomy, a long-standing issue in Nigeria’s federal structure, as stakeholders await concrete steps by the Federal Government to enforce the court’s ruling.
