ALGON’s Legal Battle for Local Government Autonomy Stalls as Court Adjourns Hearing to May 29

The long-anticipated legal face-off between the Association of Local Governments of Nigeria (ALGON) and the Federal and State Governments was delayed on Tuesday, April 15, due to the absence of the presiding judge, Justice Inyang Ekwo, at the Federal High Court in Abuja. The case, marked FHC/ABJ/CS/353/2025, has now been rescheduled for May 29, 2025.

ALGON, representing the interests of Nigeria’s 774 local government councils, filed the suit to compel enforcement of the Supreme Court’s landmark ruling on July 11, 2024, which granted financial autonomy to local governments. Nearly nine months after the judgment, the association claims both federal and state authorities have failed to implement the ruling, continuing practices that undermine local government independence.

The legal battle is not only pivotal in the quest for grassroots governance reform, but it also raises complex questions about institutional responsibility, constitutional authority, and financial transparency in the disbursement of national resources.

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ALGON Seeks Representation at FAAC and Financial Autonomy

At the core of ALGON’s lawsuit is the demand for full implementation of the Supreme Court’s judgment, which emphasized the constitutional independence of local governments and ordered direct allocation of funds to them. ALGON is seeking an order compelling the Federal Government and its agencies to cease the practice of routing local government allocations through state governments, which it says violates the autonomy granted by the apex court.

Specifically, ALGON is requesting:

• Recognition of local governments at the Federation Account Allocation Committee (FAAC) meetings.
• An injunction barring the first to eighth defendants — including the Attorney-General of the Federation, the Ministry of Finance, and the Central Bank of Nigeria (CBN) — from disbursing funds to local councils through state intermediaries without ALGON’s input.
• A declaration that commercial banks have acted beyond their mandate by serving as disbursement channels for local government funds without legal authorization.

ALGON’s legal team, led by Okechukwu Azorji, insists that the federal and state governments have willfully ignored the Supreme Court’s ruling and have instead continued to administer local government funds through practices deemed unconstitutional.

Defendants Challenge ALGON’s Legal Standing

In response, several of the defendants have mounted legal objections, primarily challenging ALGON’s authority to sue. The Central Bank of Nigeria (CBN), represented by senior advocate Sam Ologunorisa, filed a preliminary objection questioning the jurisdiction of the court. The apex bank argued that ALGON is not a constitutionally established body and was not a party to the original Supreme Court case whose implementation it now seeks to enforce.

Similarly, the legal counsel for the Federation Account Allocation Committee (FAAC), Olawale Fapohunda (SAN), argued that ALGON lacks locus standi — the legal capacity to initiate the suit — because it does not represent local governments in any statutory framework governing national revenue allocation.

State Finance Commissioners, also listed among the defendants, echoed this position. Their counsel emphasized that the existing legal structure under the Allocation of Revenue (Federation Account, etc.) Act 1982 does not permit local governments or their representatives to have a seat at FAAC meetings.

ALGON Defends Its Legal Status and Mandate

In a counter-affidavit filed in response to the objections, ALGON maintains that it is a legally incorporated entity with a mandate to defend and promote local government autonomy across Nigeria. The association, incorporated on May 10, 2002, argues that its registration gives it legal recognition and that it possesses the authority to act in defense of its members — the local government councils.

ALGON’s legal counsel contends that the continued financial subjugation of local councils through intermediaries is a blatant violation of the Supreme Court ruling, and that the body must be allowed to challenge this systemic disregard for the law in court.

Despite Tuesday’s adjournment, the case is gaining national attention for its potential to redefine the fiscal and administrative relationship between Nigeria’s three tiers of government. Advocates for local governance reform argue that full financial autonomy for local governments is critical to national development, as it would enable more effective delivery of grassroots services and reduce corruption.

As the case now heads for a fresh hearing on May 29, stakeholders across Nigeria are watching closely. If ALGON prevails, it could set a precedent for the enforcement of Supreme Court rulings against both federal and state governments, strengthen democratic decentralization, and accelerate local government reforms nationwide.