Tinubu issues strong order to guarantee direct funding for local governments

President Bola Tinubu has issued a strong warning to state governors, saying he may invoke an Executive Order to enforce the direct disbursement of funds to local governments if states continue to ignore a Supreme Court judgment granting financial autonomy to councils.

The President spoke on Friday while addressing members of the All Progressives Congress (APC) at the party’s 15th National Executive Committee (NEC) meeting held at the State House Conference Centre in Abuja.

In a pointed remark aimed at governors accused of withholding statutory funds allocated to local councils, Tinubu signalled that continued defiance could compel him to authorise direct payment of council allocations from the Federation Account Allocation Committee.

Speaking before NEC members, including governors, members of the National Working Committee and other party leaders, the President said, “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.”

He added, “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.”

Tinubu’s comments came months after the Supreme Court, on July 11, 2024, delivered a landmark ruling in favour of the Federal Government in a suit seeking to enforce financial independence for local governments.

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

The court further ordered that allocations from the Federation Account be paid directly to local governments, in line with Section 162(5–8) of the 1999 Constitution (as amended), a provision many states have allegedly sidestepped through the operation of joint state-local government accounts.

Reiterating his position during the meeting, Tinubu stressed that compliance with the judgment was not optional and warned that continued violations could attract federal action.

“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” he insisted.