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Autonomy battle: Local Governments demand direct funds as states receive N7.43tn

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The Association of Local Governments of Nigeria and the National Union of Local Government Employees have thrown their weight behind President Bola Tinubu’s plan to enforce direct deductions of council funds from the Federation Account Allocation Committee, even as state governments continue to retain control over allocations to local governments.

During the 15th National Executive Committee meeting of the All Progressives Congress at the State House Conference Centre, Abuja, Tinubu urged state governors to comply with the Supreme Court ruling granting financial autonomy to local governments.

The President warned that failure by governors to honour the verdict may compel him to issue an Executive Order to ensure direct allocations from the Federation Account to local councils.

Tinubu’s remarks followed the July 11, 2024, judgment by the Supreme Court, which upheld the Federal Government’s suit seeking to enforce financial independence for local governments.

In a unanimous decision, a seven-member panel of the apex court declared that it is unconstitutional for state governments to retain or manage funds meant for local councils.

The judgment held that the use of a caretaker committee amounts to the state government taking control of the local government and is in violation of the 1999 Constitution.

However, 18 months after the judgment, findings by The PUNCH show that the process remains largely unimplemented.

Local government allocations have continued to pass through state governments amid delays and disputes between the Central Bank, state governments, local government authorities, and other relevant agencies.

The PUNCH learnt that state governments received control over at least N7.43tn meant for local government councils between July 2024 and December 2025, despite the landmark Supreme Court ruling mandating direct financial autonomy for councils across the federation.

An analysis of Federation Account Allocation Committee disbursements, based on official press statements issued by the Office of the Accountant General of the Federation after each FAAC meeting, shows that local governments were allocated N7.43tn over the 18-month period, even as the structure for direct access to the funds remained largely unchanged.

The amount was derived from allocations to the 774 local councils from July to December 2024 and the full 12 months of 2025.

In the second half of 2024 alone, councils received N2.08tn, rising sharply to N5.35tn in 2025.

FAAC data show that in July 2024, local governments received N337.02bn as revenue earned in June.

This rose to N343.70bn in August and moderated to N306.53bn in September. Allocations rebounded in the final quarter, climbing from N329.86bn in October to N355.62bn in November, before peaking at N402.55bn in December 2024.

Despite the rising inflows, funds continued to be paid through the long-criticised State Joint Local Government Account framework, allowing governors to retain significant influence over council finances.

The trend accelerated in 2025. Local governments received N361.75bn in January, rising steadily to N434.57bn in February and N410.56bn in March.

By mid-year, monthly allocations crossed N440bn, reaching N444.85bn in July and N485.04bn in August.

The highest monthly allocation to councils during the period was recorded in October 2025, when N529.95bn was shared as revenue earned in September.

This was followed by N505.80bn in November before moderating to N445.27bn in December 2025.

In total, local governments received N5.35tn in 2025, compared with N3.77tn in 2024, representing an increase of N1.58tn or about 42 per cent year on year.

The surge mirrored broader growth in FAAC distributions. Total allocations to the three tiers of government rose from N13.91tn in 2024 to N20.28tn in 2025, while total distributable revenue, including 13 per cent derivation, climbed from N15.26tn to N21.89tn.

Federal Government allocations increased from N4.95tn in 2024 to N7.61tn in 2025, while states’ allocations rose from N5.19tn to N7.31tn over the same period.

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However, the continued routing of council funds through state structures has raised concerns that the gains from higher revenues are not translating into improved grassroots governance.

ALGON, NULGE back Tinubu

In an interview with our correspondent in Abuja, the Secretary General of ALGON, Muhammed Abubakar, affirmed support for President Bola Tinubu’s move to mandate the deduction of funds meant for LGs directly from the Federation Account Allocation Committee.

Muhammed said the President had made his warning directly to the governors and anchored it on the Supreme Court judgment, which he described as the highest authority in the land.

“So basically, as you are aware, he said it in their presence, not in their absence. So, my belief is that they will actually carry that out before the president will also do the needful, like he rightly told them in the meeting,” he said.

He expressed confidence that the governors would comply with the ruling without further prompting, noting that Tinubu’s remarks were clear and left no ambiguity about the consequences of continued non-compliance.

“So I guess they will obey the Supreme Court’s order and do the needful.  But basically, if that is not carried out, I think we will all be in support of the president to go ahead with whatever threat he has made,” he added.

Also commenting, NULGE Bauchi State chapter has applauded Tinubu’s proposed executive order aimed at stopping state governments from diverting local government funds.

Speaking with The Punch correspondent on Monday, the President of NULGE in the state, Muhammad Yunusa, described the move as a welcome development that would bring relief to local government workers across the country.

Yunusa said, “If the President invokes an executive order to stop governors from diverting local government funds, it is we, the local government workers, that will be honoured.”

He noted that the issue of local government financial autonomy had lingered for years despite legal interventions, including a Supreme Court judgment delivered last year.

“This matter has been on for a long time. Even after the Supreme Court passed its judgment last year, up till today it has not seen the light of the day,” he said.

According to him, full implementation of the executive order would strengthen grassroots governance and improve the welfare of local government workers.

Yunusa further insisted that the directive would enhance accountability and ensure that funds intended for councils are used strictly for grassroots development.

Punch efforts to get the reaction of the Chairman of ALGON Bauchi State chapter, Mahmood Baba-Ma’aji, proved unsuccessful, as calls and messages sent to him were not responded to as of the time of filing this report.

Also speaking, the Chairman of NULGE in Kano, Comrade Ibrahim Muhammad, has expressed cautious optimism about the state administration’s management of local government funds.

He told PUNCH that while there is currently no formal discussion with the state government regarding direct allocation of funds to local government areas, the union is satisfied with how the funds are being handled.

“The governor is not relenting in releasing funds for meaningful projects across the state,” he said. “We also commend the current NNPP-led administration for clearing billions of naira in debts owed to civil servants. That is commendable.”

Muhammad added that he is optimistic that Kano State would comply fully with the president’s directive on local government autonomy.

“The recent orders by the president will be complied with in Kano. The governor was not in town when the president restated the order. I’m sure when he returns, he will address the issue effectively,” he said, noting that any failure by governments to treat LGAs appropriately could justify the president’s intervention.

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Efforts to obtain a reaction from the ALGON Chairperson in the state, Hon. Saadatu Salisu, proved unsuccessful as repeated calls to her phone went unanswered.

In a related development, the Kebbi State government has expressed willingness to ensure that local governments in the state enjoy their autonomy in accordance with the Supreme Court rulings.

A top government official in the state who spoke with our correspondent on the condition of anonymity said the state government is working on modalities to ensure the ruling is adhered to the fullest.

According to the source, “as you are aware, our governor is a comrade who was also part of the struggle for the restoration of power to the local governments.

“He is also someone who has a close relationship with Mr President, therefore we should be assured that he will implement the judgment for the benefit of the people at the grassroots.

“There is no cause for alarm over the President directives and I can assure you that it is a done deal here in Kebbi States” he added.

Meanwhile, efforts to get reactions from Sokoto State were not successful as both ALGON and government officials declined to comment on the development.

Also speaking, the Nasarawa State chapter of the NULGE has said it is currently expecting the state government to comply with Tinubu’s directive on the full implementation of the LG Autonomy which was approved by the Supreme Court.

The President of NULGE in the state, Comrade Adamu Sharhabilu, stated this while speaking with our correspondent during an interview in Lafia, the state capital, on Monday.

According to him, despite the Supreme Court’s decision on the matter, Nasarawa State had continued in its old pattern of distributing funds to the 13 Local Government Areas of the state through the state’s Ministry for Local Government and Chieftaincy Affairs.

While lamenting the situation, the NULGE President said that with directives from President Tinubu, the association expects to witness new developments on the matter in the coming days.

He added, “The Nasarawa State government has not started giving us our money yet. We do not know their direction at the moment, because President Bola Tinubu said if they do not give us the money, he will remove our share from the FAAC and send it to the LGAs, so we are waiting for his action.”

Meanwhile, the Nasarawa State government has clarified that it is not interfering with funds accruing to the 13 LGAs of the state.

The state government noted that the LGAs had been enjoying full autonomy since 2019, when Governor Abdullahi Sule took over the leadership of the state.

The Senior Special Assistant to the Governor on Public Affairs, Peter Ahemba, disclosed this while speaking with our correspondent in Lafia on Monday.

“The narrative that Local Government funds are being tampered with in Nasarawa State is not correct. I can tell you very firmly that Governor Sule has never tampered with local government funds.

“In fact, he had been the one supporting the LG Chairmen with funds to meet up with some of their responsibilities, even though they are enjoying the full autonomy.

“The Nasarawa State government is committed to continue to give our LGAs every necessary support to enable them to pay salaries to workers and embark on meaningful projects without any hitches,” he said.

However, Tinubu’s warning to state governors to release Local Government funds or face executive action has sparked mixed reactions in Jigawa State.

The State Chairman of the ALGON, Hon. Sibu Abdullah, who is also the chairman of Dutse LGA, expressed optimism that the state government will comply with the Supreme Court ruling.

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“We are guaranteed that the state government have respect for the court’s decision and it’s already releasing the funds to enable local governments to function effectively,” Abdullah said.

However, efforts to reach the leadership of the NULGE in Jigawa State by the PUNCH Correspondent on Monday were unsuccessful, with a senior staff member declining to comment on the issue.

Another senior official at the Jigawa State ALGON secretariat, who spoke on condition of anonymity, hinted that the association is weighing the Supreme Court ruling and Tinubu’s warning before making a decision.

In a similar vein, Attorney-General Abdulkadir Fanini did not respond to inquiries on whether the state government plans to comply with Tinubu’s request.

However, an official who asked not to be mentioned, citing that he is not authorised to speak to the press on the issue, told our Correspondent that the state government is committed to respecting the rule of law and the constitution.

“Jigawa state government has no intention whatsoever to retain or manage funds meant for local councils,” he declared.

The Chairman of Toungo local government and the state chairman of ALGON, Mr Suleiman Toungo, has said that the federal government is playing politics with the local government autonomy Supreme Court judgement.

Toungo, who spoke with The PUNCH by phone on Monday, said Governor Ahmadu Fintiri directed all 21 council chairmen in the state to open accounts with the Central Bank of Nigeria, as requested by the federal government.

“I went to CBN three times to open account, the last time I went the management ask me to go back and that they will communicate to me, as I am talking to you now there is no communication from CBN to and any of my members in Adamawa state, “ he said.

“Fintiri has long ago implemented the local government autonomy, nobody touches our money, if you can tour the 21 local governments, you can see projects unlike before, this means we are in charge of our federal allocation, “ he stated.

Toungo said that the federal government should come clear on the issue of autonomy and stop dancing in the gallery.

“President Bola Tinubu should ask CBN why it refuses to open accounts for some of us, how can autonomy be fully operated without CBN accounts? “he asked.

He said that the issue of local government autonomy has turned into politics, pointing out that the Adamawa state governor had handed over local government funds to council chairmen before the Supreme Court’s judgment.

Also speaking, NULGE Gombe chapter chairman, Saleh Abdullahi, says there is no case diversion in the state.

In a telephone chat with our correspondent in Gombe, he said, “We are not sure of any diversion in the state, so our state may not be affected.”

Texts and calls to the ALGON chairman and the chairman of Gombe LGA, Sani Haruna, were not returned as of the time of filing this report.

Also, attempts by our correspondent to reach the Director General of the Nigeria Governors Forum, Abdullateef Shittu, for a comment on the story were unsuccessful, as his phone was unreachable at the time.

However, the NGF spokesperson, Yunusa Abdullahi, stated that the President has spoken with the Governors, who will provide an update to the public shortly.

He stated, “The President has spoken with the Governors, so they will have a meeting, and then the details will be out. The President spoke with the Governors, and I am sure they will respond appropriately.”

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Reps order IG to produce fake, PFIPC agency DG Adeyemi within 48 hours

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The House of Representatives Committee investigating the operations of the controversial Presidential Foreign Investment Promotion Council has directed the Inspector-General of Police, Olatunji Disu, to produce the self-acclaimed Director-General of the organisation, Adeyemi Adeniyi, before it on Wednesday.

The directive was issued on Monday during the resumed investigative hearing at the National Assembly Complex, Abuja.

Representing the IG, Assistant Commissioner of Police, Bashir Abdullahi, appeared before the committee and was instructed to ensure Adeyemi’s appearance by noon on Wednesday to assist lawmakers in their ongoing investigation into the activities of the organisation.

The committee is probing the circumstances under which the PFIPC, despite not being legally established, allegedly secured office accommodation in Phase III of the Federal Secretariat Complex in Abuja and received a budgetary allocation of ₦1.32bn in the 2026 Appropriation Act.

The directive followed the Nigeria Police Force’s confirmation of key aspects of its criminal investigation, including petitions from the Office of the Chief of Staff to the President alleging that Adeyemi fraudulently presented himself as the Director-General of both the Presidential Economic Advisory Council and the Presidential Foreign Investment Promotion Council.

The Committee Chairman, Yusuf Gagdi, said Adeyemi’s appearance had become imperative given the seriousness of the allegations and the institutions implicated in the matter.

“This committee clearly needs the suspected DG to appear before this committee. People’s names are involved. People’s integrity are involved. Institutional names are involved. Institutional integrity is involved.

“It is not an option now. We will need him here to confirm some documents to us in such a way that will not undermine our investigation to enable us to submit our report on time,” Gagdi said.

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The committee subsequently directed its clerk to formally communicate its resolution to the Inspector-General of Police.

“The committee hereby resolves that the Inspector-General of Police of the Federal Republic of Nigeria do kindly present Mr Adeyemi on Wednesday by 12 noon. That is the ruling of the committee,” Gagdi declared.

Earlier, ACP Abdullahi informed lawmakers that although investigations were ongoing, the police had already filed an eight-count charge against Adeyemi before the Federal High Court.

“The Nigerian Police Force investigated part of this case late last year and filed eight-count charges before a Federal High Court. The case is ongoing,” he said.

He disclosed that the suspect had been arrested and arraigned, but cautioned against making public disclosures that could prejudice the ongoing investigation or judicial proceedings.

“We don’t want to say things that are under investigation. It is definitely going to prejudice the ongoing investigation and make people have opinions that may prejudge the outcome of an investigation or judicial decision,” Abdullahi stated.

Despite the police’s reservations, the committee sought confirmation of documentary evidence already in its possession.

The police confirmed that on October 17, 2025, the Office of the Chief of Staff to the President petitioned security agencies over allegations against Adeyemi, prompting investigations that culminated in criminal charges bordering on conspiracy and fraud.

Investigators also confirmed receiving another petition alleging that Adeyemi falsely presented himself as the Director-General of both the Presidential Economic Advisory Council and the Presidential Foreign Investment Promotion Council.

According to the police, the petition alleged that Adeyemi used the purported office to obtain accommodation within the Federal Secretariat, sought approval to recruit about 300 personnel, attempted to secure a $1.3 billion allocation in the 2026 Appropriation Act for the non-existent agency, and planned to organise a World Investment Summit under the platform of the purported council.

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One of the highlights of the hearing came when the committee compared signatures on documents allegedly issued from the Office of the Chief of Staff to the President with signatures on authentic official correspondence obtained by the police.

When asked whether the signatures matched, the police witness responded unequivocally,”They are not the same.”

The committee said the discrepancy reinforced concerns that official State House documents may have been forged.

Gagdi further asked, “So, it is not only a letter that was suspected to be forged? We are dealing with documents that include what is said to be a forged Act of the National Assembly in an attempt to establish a fake agency,” he added.

Gagdi disclosed that investigators had identified about 29 allegedly forged documents, including purported approvals from the State House, the Office of the Head of the Civil Service of the Federation, the Office of the Secretary to the Government of the Federation, the Ministry of Finance and several other government institutions.

According to him, representatives of many of the affected agencies had already appeared before the committee and disowned the documents attributed to their offices.

Gagdi, however, stressed that the committee had deliberately avoided compelling the police to disclose information that could compromise ongoing criminal investigations.

“We are avoiding a situation whereby they will be pushed to make statements that will undermine their ongoing investigation,” he added.

He assured that the House investigation would continue independently and that its final report could recommend further action by relevant security agencies.

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Forged state house letter used to create fake PFIPC agency, Acct-General reveals

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The House of Representatives’ investigation into the operations of the controversial Presidential Foreign Investment Promotion Council took a dramatic turn on Monday after the Accountant-General of the Federation, Shamseldeen Ogunjimi, revealed that a forged State House letter was used to obtain official government recognition for the ‘fake’ agency.

Appearing before the House Ad Hoc Committee probing the circumstances surrounding the establishment and operations of the council, Ogunjimi disclosed that the Office of the Accountant-General acted on what appeared to be an authentic correspondence from the presidency requesting the creation of an administrative code for the PIFPC, only for investigations to later establish that the letter did not originate from the State House.

The revelation is the latest in a series of disclosures before the committee, which is investigating how a non-existent presidential agency allegedly secured office accommodation in the Federal Secretariat, sought budgetary allocations, recruited personnel and obtained official government recognition through what investigators believe were forged documents.

Presenting his report, Ogunjimi said the Office of the Accountant-General first interacted with the purported council in November 2024.

According to him, “a letter dated November 7, 2024, bearing a State House reference number, requested the creation of an administrative code for the Presidential Economic Advisory Council to facilitate budgeting, accounting and financial reporting.”

He explained that, in line with established procedures, “the Office of the Accountant-General processed the request, created the administrative code and communicated its approval to the State House,” with a copy sent to the Office of the Auditor-General for the Federation.

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Following that approval, the office received additional requests from the purported council, including applications for self-accounting status, deployment of personnel, opening of Treasury Single Account and domiciliary accounts, as well as funding approvals.

Ogunjimi, however, stressed that although some administrative processes were carried out, no public funds were ever released to the council.

“It is important to note that no funds were released under salaries, overhead, capital, or any form of intervention or special allocation to the council,” Ogunjimi told the committee.

He further disclosed that while the council requested an establishment grant of ₦27.4bn, the application was rejected because there was no budgetary provision for such expenditure.

The Accountant-General also explained that although the Central Bank of Nigeria opened two domiciliary accounts for the organisation to receive inflows, the accounts never became operational because the council failed to satisfy the regulatory conditions required for their activation.

Lawmakers expressed concern over how the purported agency was able to navigate several layers of government bureaucracy without raising suspicion.

Responding, Ogunjimi made what committee members described as one of the most significant revelations of the hearing.

“The letter that was received by the Treasury was respectfully addressed as coming from the State House. That letter was never issued by the State House”, he said

The disclosure prompted members of the committee to conclude that a “hijacked” State House letter had allegedly been used to mislead government institutions into processing official requests for an agency that had no legal existence.

The committee also questioned how civil servants originally posted to the Office of the Chief Economic Adviser to the President eventually became attached to the purported council without the knowledge of the Office of the Accountant-General.

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Ogunjimi explained that two officers deployed to the Office of the Chief Economic Adviser in 2010 and 2013 remained in the office after it was allegedly taken over by the new council, but no formal communication was sent to the treasury notifying it of any change.

“It was never assumed or written to us that those two officers were being taken over. The staff also never reported to the office to say that another council had taken over the office and the name had changed. As far as I was concerned, we were dealing with a new agency, not the Office of the Chief Economic Adviser,” he said.

He further disclosed that when the purported council later requested the deployment of five additional officers, the treasury approved only three after determining that the organisation’s size did not justify the number requested.

“It was when all this matter came to light that I got to know that two of our staff were actually working or being absorbed by the agency. We never knew. We believed, based on the records available to us, that those officers were still with the Office of the Chief Economic Adviser,” he added.

The ongoing House investigation centres on allegations that forged presidential approvals, counterfeit State House correspondence, fake Acts of the National Assembly and other falsified government documents were used to create and operate the purported Presidential Foreign Investment Promotion Council and the Presidential Economic Advisory Council.

The committee has already heard evidence from the Nigeria Police Force, which confirmed that criminal charges bordering on conspiracy and fraud have been filed against the prime suspect, Adeyemi Adeniyi, at the Federal High Court.

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At its sitting on Monday, the committee also directed the Inspector-General of Police to produce Adeyemi before lawmakers by noon on Wednesday to answer questions relating to the alleged forgery of official government documents and the operations of the purported presidential agency.

The committee is expected to conclude its investigation with recommendations on possible administrative, legislative and criminal actions against those found culpable.

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See full list of African countries that do not need proof of funds for UK’s student visa

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The United Kingdom on Monday updated its financial requirements for applicants seeking Student and Child Student visas, retaining stricter evidence rules while exempting nationals of only three African countries from submitting proof of funds at the point of application.

The updated guidance, published by the UK government on its website, listed Botswana, Mauritius and Tunisia as the only African countries whose nationals will not be required to provide financial evidence upfront unless requested during the visa decision-making process.

Other countries on the exemption list include Australia, Canada, China, Japan, New Zealand, Singapore, the United States, France, Germany, Italy, Spain, the United Arab Emirates and Qatar, among others.

Despite the exemption, the UK clarified that applicants from the listed countries must still meet all financial requirements and could be asked to provide evidence during the application process.

The guidance stated, “You must meet the financial requirements for this route when you apply; however, you may not need to submit evidence upfront as part of your application. In these circumstances, the decision maker may still request the evidence from you during the application process to prove you meet the financial requirements.”

The development means applicants from major African source countries for UK education, including Nigeria, Ghana, Kenya, South Africa, Egypt and others not listed, will continue to submit financial documents as part of their visa applications.

Under the revised rules, applicants for a Student visa must demonstrate they have sufficient funds to cover tuition fees as stated on their Confirmation of Acceptance for Studies and living expenses.

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Students studying outside London are required to show they have £1,171 for each month of their course, up to a maximum of nine months, while those studying in London must show £1,529 per month for the same period.

Applicants travelling with dependants must also show additional funds. Those studying outside London must have £680 per month for each dependant, while applicants studying in London must show £845 monthly for each dependant, both for up to nine months.

For Child Student visa applicants, the required maintenance funds vary depending on their living arrangements, including boarding school accommodation, foster care, residence with parents or legal guardians, or independent living for eligible 16 and 17-year-olds.

The UK government also outlined acceptable sources of funds, including government-backed student loans, official financial sponsorship, personal savings and money belonging to parents or eligible partners.

However, it said applicants cannot rely on overdrafts, cryptocurrency holdings, stocks and shares, pensions or funds kept in unregulated financial institutions.

The guidance further requires applicants using personal or family funds to show that the required amount has been held for at least 28 consecutive days before the application, with financial evidence dated no more than 31 days before submission.

The UK also maintained exemptions from providing financial evidence for certain categories of applicants, including those applying to extend their stay after spending at least 12 months in the country on a valid visa, Student Union Sabbatical Officers, doctors and dentists in training, and applicants whose nationality qualifies for the reduced documentary requirement.

The latest update comes as the UK continues to tighten oversight of its international student visa system while maintaining financial eligibility requirements for prospective students seeking to study in the country.

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