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Fiscal Autonomy: Why CBN Hasn’t Released Funds To 774 LGAs — FG

The Federal Government explained on Wednesday why, despite the Supreme Court’s order, the Central Bank of Nigeria, CBN, has not commenced the direct release of funds to the country’s 774 Local Government Areas, LGAs.
In separate presentations, the Attorney-General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN, and CBN’s Director of Legal, Mr. Kofo Salam-Alade, maintained that modalities that would enable the various LGAs to draw funds directly from the federation account were not in place.
The duo further disclosed that the necessary bodies are still profiling those who would serve as signatories to the accounts of the various LGAs.
Speaking at a state-of-the-nation discourse on strengthening local government autonomy in Nigeria, organised by the Nigerian Bar Association, NBA, the AGF revealed that shortly after the July 11, 2024, landmark judgement of the Supreme Court that granted fiscal autonomy to the LGAs, an implementation committee was set up.
READ ALSO: Governors’ Forum Speaks On LG Financial Autonomy
According to the AGF, whose speech was read by the Director of Civil Litigation, Federal Ministry of Justice, Mr. Tijjani Gazali, SAN, the committee is comprised of representatives of FG, the Association of Local Governments of Nigeria, ALGON, and the Nigerian Governors Forum, NGF.
He said the committee has been working assiduously to develop “the most practicable framework for the full implementation of the judgment, especially regarding direct payment of allocations from the Federation account to Local Government councils.”
“The committee is expected to complete its mandate any time from now and present its recommendation to Nigerians,” the AGF added, saying President Bola Tinubu determined to emancipate the LGAs as the third tier of government in the country that led his administration to drag the 36 Governors to the Supreme Court.
However, the AGF decried that despite the apex court’s judgment outlawing the illegal removal of democratically elected local government councils by State Governors, it was unfortunate that some states have continued to flagrantly carry on with the illegality.
READ ALSO: BREAKING: Supreme Court Delivers Judgment On LG Autonomy
The Justice Minister described as worrisome “the unconstitutional connivance by State Governors and their State Houses of Assemblies to wily nilly dismantle democratically elected local government structures without recourse to the rule of law and replace them with their stooges.”
“Let me state in unequivocal terms that this act is tantamount to treason and must be treated as such. While it is true that Section 308 of the Constitution grants the Governor immunity from prosecution, I wish to be clear that this flagrant disobedience to the Supreme Court judgment will have unpleasant consequences for the State as a whole, should it persist,” the AGF warned.
He said the local government structures had almost become extinct until his office took the matter before the apex court.
Meanwhile, providing more insight into why the LGAs had yet to receive funds directly from the federation account despite the Supreme Court’s order, CBN’s Director, Legal, Mr. Salam-Alade, said the apex bank had no banking relationship with the LGAs.
READ ALSO: BREAKING: Supreme Court Delivers Judgment On LG Autonomy
He said the bank had commenced the process of profiling those who would serve as signatories to the accounts of the respective LGAs in its bid to ensure transparency and accountability.
“This is all about the standard procedure in the form of KYC (Know Your Customer). Anyone who will be a signatory to the account must be profiled.
“The process is ongoing, and we are collaborating with the AGF office. We have also written to the LGAs.
“All that ALGON needs to do is encourage its members to approach the CBN within their locality. Within 48 hours, their problem will be solved.
READ ALSO: FG Drags Governors To Supreme Court, Seeks LG Autonomy
“We are using this opportunity to call on the 774 men to come forward for their documentation. No account can be operationalized without the prerequisite Customer Due Diligence, CDD,” the CBN Legal Director added.
However, contrary to CBN’s claim, a representative of ALGON at the event, Mr. Sam Akala, said he was not aware that the apex bank wrote to any LGA regarding the account opening process.
“I cannot confirm that such communication has been received officially,” he insisted, even as he expressed the readiness of ALGON to embrace the challenge of taking development down to the grassroots.
Earlier in his welcome remarks, NBA President Mazi Afam Osigwe, SAN, said the discourse aimed to hold the association to a position that would not only guarantee peace and security but also ensure that the LGAs closest to the people become functional and their finances used for the good of the people.
READ ALSO: LG Autonomy: Ondo Assembly Files To Join FG’s Suit
“There must be democracy at the Local Government level. All the other tiers of government must allow the LGs to breathe.
“If we fail to get it right at the LG level, we may be setting a stage for a greater calamity,” Osigwe, SAN, added.
In addition to Attorneys General of States and other dignitaries, the event, which featured a retired Justice of the Supreme Court, Ejembi Eko, as the guest speaker, included heads of key government agencies and senior legal practitioners in the country.
News
JUST IN: Court Declares Utomi’s ‘Shadow Govt’ Unconstitutional

A Federal High Court in Abuja has ordered Pat Utomi, a professor of political economy, and his associates to halt their plan to establish a shadow government.
In a judgment delivered on Monday in a case filed by the Department of State Services (DSS), the judge, Justice James Omotosho, declared that the idea of a shadow government or cabinet is unconstitutional and incompatible with the nation’s presidential system of government.
The judge held that the idea was inconsistent with the country’s presidential system and could mislead citizens.
READ ALSO:DSS Sues Pat Utomi Over Shadow Government
He ruled that Nigeria’s constitution does not recognise any parallel or alternative government outside the one it provides for.
“Section 14(2)(c) makes no allowance for a shadow government. The defendant cannot use foreign constitutional models to confuse the people. Such a shadow government is hereby declared void,” the judge ruled.
News
JUST IN: ASUU Issues Ultimatum To FG Over Unresolved Issues

The Academic Staff Union of Universities has issued a 14-day ultimatum to the Federal Government of Nigeria.
The union made the decision following a National Executive Council meeting held on Sunday at the University of Abuja.
The national president of ASUU, Prof. Chris Piwuna made this known in a copy of strike action he personally signed and made available to our correspondent in Abuja.
“At the National Executive Council meeting held at the University of Abuja on the 28th of September, 2025, the Union decried the neglect of the University system and the government’s consistent refusal to heed to its demands.
READ ALSO:ASUU Threatens To Due JAMB Over UTME Mass Failure
“Accordingly, ASUU has given the Federal Government of Nigeria an Ultimatum of fourteen (14) days within which to address these issues. If at the end of the fourteen-day ultimatum, the Federal Government fails to address these issues, the Union may have no option but to, first, embark on a two-week warning strike and thereafter, a total and indefinite strike.”
Recall that the Federal Government through the Federal Ministry of Education set up a committee headed by the permanent secretary of the ministry, Abel Enitan to look into a proposal for ASUU in a bid to ensure stability across universities.
At the time of filing this report, the committee has yet to make any decision known to the public.
ASUU’s core demands remain largely unchanged: renegotiation of the 2009 agreement, adequate revitalisation funds for universities, settlement of outstanding salary arrears, and sustainable funding mechanisms.
Details later
News
JUST IN: NNPC, NUPRC, NMDPRA Shut As PENGASSAN Begins Strike

The nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria on Monday paralysed operations at key oil and gas regulatory institutions, including the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The industrial action, which followed the weekend directive by the union’s National Executive Council, saw members across the country withdrawing their services, effectively shutting down critical agencies that drive Nigeria’s oil and gas industry.
It was observed that at the NUPRC headquarters in Abuja, the main gate was firmly locked, leaving several employees stranded outside the premises. Security operatives on duty confirmed that no staff were allowed entry, in line with the strike directive issued by the union.
Similarly, activities at the NMDPRA headquarters in the busy Central Business District were completely grounded as workers fully complied with the industrial action.
READ ALSO:Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’
Confirming the situation, the PENGASSAN Chairman in NMDPRA, Tony Iziogba, told The PUNCH that the union had achieved “100 per cent compliance,” effectively restricting access to staff and visitors.
He added that his colleagues had also enforced 100 per cent compliance at the NNPCL and other relevant agencies.
PENGASSAN said the strike became inevitable after the alleged wrongful dismissal of about 800 workers at the Dangote Petroleum Refinery.
The union’s directive to halt crude oil and gas supplies to the Dangote Petroleum Refinery has sent shockwaves through the energy sector, with oil marketers warning of severe disruptions in fuel distribution. This move is expected to choke the domestic market, driving up demand and prices.
READ ALSO:JUST IN: PENGASSAN Strike May Trigger Nationwide Blackout, Thermal Plants Shut Down
On Sunday, PENGASSAN announced a nationwide strike, instructing all its members in various offices, companies, institutions, and agencies to cease all services starting at 12:01 am on Monday, September 29, 2025.
The union also directed members stationed in various field locations to down tools from 6:00 am on Sunday, September 28, and commence a round-the-clock prayer vigil.
In a strongly worded resolution signed by PENGASSAN General Secretary, Lumumba Okugbawa, the union accused the refinery of violating Nigerian labour laws and International Labour Organisation conventions by sacking workers for joining the union. It alleged the dismissed workers had been replaced by foreigners.
READ ALSO:PENGASSAN Reacts As Dangote Refinery Misses Production Deadline
“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution declared. “All IOC (International Oil Companies) branches must ramp down gas production and supply to Dangote Refinery and petrochemicals.”
The development has heightened fears of fuel scarcity and blackouts, as NNPC remains the sole importer of petrol while the midstream and downstream authority regulates supply and distribution. Similarly, NUPRC is responsible for monitoring crude production and enforcing gas supply obligations to power plants.
All eyes are now on Monday’s emergency meeting convened by the Minister of Labour. Whether dialogue can restore calm or whether Nigeria plunges deeper into crisis may depend on the willingness of both sides to compromise.
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