In a landmark judgment that could reshape Nigeria’s system of local governance, a Federal High Court has ruled that local governments are constitutionally autonomous and must receive their funds directly, without interference from state governments. The court held that state control of Universal Basic Education (UBE) funds meant for local councils is незакон and violates the spirit of federalism enshrined in the 1999 Constitution.

Delivering the judgment on Monday, the court stated that local governments are a distinct tier of government and must be allowed to function independently, particularly in the management and disbursement of funds allocated to them for basic education and grassroots development. The judge ruled that the long-standing practice of channeling UBE funds through state governments has undermined accountability and stalled development at the local level.

Reps Minority Caucus Demands Immediate Suspension Of New Tax Laws

The court further directed that all funds meant for local governments, including UBE allocations, be paid directly into accounts controlled by democratically elected local councils. It stressed that state governments have no constitutional backing to seize, withhold, or reallocate such funds under any guise.

Reacting to the ruling, education stakeholders and civil society groups hailed the decision as a major victory for grassroots development and transparency. They argued that direct access to UBE funds would improve primary education infrastructure, teacher welfare, and school enrollment across rural communities.

However, some state governments expressed concerns about implementation, warning that the ruling could trigger administrative and legal adjustments across the federation. Legal analysts say the judgment could redefine intergovernmental relations and strengthen the push for full local government autonomy in Nigeria.