Court adjourns local govt autonomy case to May 29

The Federal High Court in Abuja has ajorned the hearing on a suit filed by the Association of Local Governments of Nigeria (ALGON) challenging the Federal and State Governments, rescheduling the case to May 29, 2025.

The new suit, slated for mention before Justice Inyang Ekwo, could not proceed as the Court did not sit. It was rescheduled for mention on May 29, 2025.

In the suit marked FHC/ABJ/CS/353/2025, the Registered Trustees of the Association of Local Governments of Nigeria (ALGON) was listed as the plaintiff.

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The legal action followed a Supreme Court judgment delivered on July 11, 2024, which affirmed financial autonomy for local governments across the country.

ALGON initiated the suit in response to the alleged non-compliance of state governments with the Apex Court’s ruling. The Association is suing the Attorney-General of the Federation and Minister of Justice, the Federal Republic of Nigeria, and 23 others.

Other defendants included the Minister of Finance, the Central Bank of Nigeria (CBN), State Commissioners for Finance, the Minister of Budget and National Planning, and the Accountant-General of the Federation. Also joined in the suit were the Revenue Mobilisation, Allocation and Fiscal Commission, the Nigerian National Petroleum Company Limited (NNPC), several commercial banks, and an individual named Bello Lawal.

ALGON is seeking, among other reliefs, the inclusion of all 774 local government councils as participants in Federation Account Allocation Committee (FAAC) meetings where national revenue sharing is deliberated.

The Registered Trustees of the Association of Local Governments of Nigeria (ALGON) have asked the Federal High Court to declare that, following the Supreme Court’s July 11, 2024 judgment, the first to eighth defendants cannot disburse funds to the 774 local government councils in Nigeria through the ninth to twenty-third defendants without prior approval or authorization from the plaintiff.

They further sought a declaration that the first to seventh defendants are not legally permitted to discuss, approve, disburse, or otherwise manage funds accruing to the local councils without direct representation from the councils at such proceedings.

ALGON argued that while the Supreme Court judgment was aimed at strengthening local government autonomy, key government actors—including the Attorney-General of the Federation, Ministry of Finance, state Commissioners for Finance, and the Central Bank of Nigeria—had taken deliberate steps to undermine the decision.

Through its counsel, Okechukwu Uju-Azorji, ALGON alleged that the ninth to twenty-third defendants, comprising several commercial banks, were positioning themselves as intermediaries or depositories for allocations meant for local governments, contrary to the Supreme Court’s ruling.

In its preliminary objection, the Central Bank of Nigeria (CBN), represented by Sam Ologunorisa, SAN, urged the court to dismiss the suit on the grounds of lack of jurisdiction, arguing that ALGON is not a constitutionally or statutorily recognised legal entity and was neither a party nor a beneficiary in the Supreme Court judgment.

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Similarly, counsel for the Federation Account Allocation Committee (FAAC), Olawale Fapohunda, SAN, contended that ALGON lacked the legal capacity to initiate the suit, thereby stripping the court of jurisdiction.

The State Commissioners of Finance, represented by their lawyer, also opposed ALGON’s claims, citing Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982, which defines FAAC’s statutory membership—excluding representatives of local government councils.

In response, ALGON filed a counter-affidavit asserting its legal status, stating that it was duly incorporated on May 10, 2002, with the mandate to promote and defend the autonomy and interests of local governments across Nigeria.