Court adjourns ALGON’s local government financial autonomy suit against federal, state govts

The Federal High Court in Abuja has rescheduled for 29 May a suit filed by the Association of Local Governments of Nigeria (ALGON) against the federal and state governments over persistent denial of local governments their financial autonomy in the country.

The fresh suit, which was scheduled for mention before Judge Inyang Ekwo, could not proceed because the court did not sit.

The matter was, however, fixed for 29 May for mention.

The News Agency of Nigeria (NAN) reports that the plaintiff, ALGON, filed the suit marked: FHC/ABJ/CS/353/2025, citing the 11 July 2024 verdict of the Supreme Court affirming the financial autonomy of local governments in the country.

However, ALGON filed the suit following alleged failure by the state governments to comply with the decision of the Supreme Court.

The association sued the Attorney-General of the Federation (AGF) and Minister of Justice, the Federal Republic of Nigeria and 23 others.

Other defendants include the Minister of Finance, the Central Bank of Nigeria (CBN), states’ Commissioners for Finance, Minister of Budget and National Planning, and the Accountant-General of the Federation.

The rest are the Revenue Mobilisation, Allocation and Fiscal Commission; the Nigerian National Petroleum Company Limited, various commercial banks, and one Bello Lawal as defendants in the suit.

ALGON, in the case, demands that the 774 constitutionally recognised local councils be granted representation at Federation Account Allocation Committee (FAAC) meetings where allocations are discussed.

It prayed the court to declare that “given the Supreme Court decision on 11 July 2024, the 1st to 8th defendants cannot disburse monies to the 774 local government councils in Nigeria, through the 9th to 23rd defendants without the plaintiff authorising, approving such.

They also sought a declaration that the 1st to 7th defendants cannot discuss, approve, disburse or in any other way whatsoever deal with the monies accruing to the 774 local government councils in Nigeria without the representation of the local government councils.

The group contended that while the Supreme Court’s judgment intends to liberate the local government administration, the AGF, Ministry of Finance, state’s Commissioners of Finance and CBN had taken “precipitate action to frustrate the implementation of the decision.”

ALGON, through its counsel, Okechukwu Uju-Azorji, alleged that the 9th to 23rd defendants, which are the commercial banks, are already taking steps “to be the conduit pipe or warehouse from which any money or allocation meant for the local government councils will be collected.”

The CBN, in its preliminary objection filed by Sam Ologunorisa, a Senior Advocate of Nigeria (SAN), urged the court to dismiss the suit for lack of jurisdiction.

The central bank contends that ALGON is not a legal entity recognised by the constitution or any statute, and was not a party or beneficiary in the Supreme Court case upon which it now relies.

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Similarly, counsel for FAAC, Olawale Fapohunda, a SAN, argued that ALGON lacked the legal standing to bring the case, thereby robbing the court of jurisdiction.

Also, the state Commissioners of Finance, through their lawyer, argued that members of FAAC, as stipulated by law, does not include representatives of the 774 LGAs, as being canvassed for.

They cited Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982, which outlines the FAAC’s statutory membership—excluding local government representation.

In response, however, ALGON filed a counter-affidavit, asserting its legal status.

It argued that it was incorporated as an association on 10 May 2002, with the principal objective of promoting and defending the autonomy and interests of local governments in Nigeria.(NAN)