Breaking: Tinubu Cautions Governors Against Retaining Local Government Funds

State governors have received a severe warning from President Bola Tinubu that if they disregard a recent Supreme Court decision upholding financial autonomy for Nigeria’s third tier of government, he may be forced to issue an Executive Order to mandate direct allocations to local governments.

At the All Progressives Congress’s (APC) 15th National Executive Committee (NEC) meeting on Friday at the State House Conference Centre in Abuja, Tinubu gave a speech.

Tinubu threatened to utilize the Federation Account Allocation Committee (FAAC) to directly distribute local council monies if governors were found to have withheld statutory amounts intended for local councils.

“The Supreme Court has capped it for you again, saying, ‘give them their money directly,'” the President remarked, addressing NEC members, who included governors, members of the National Working Committee, and other party leaders. I have the yam and the knife, so if you wait for my Executive Order, I’ll chop it.

“I’m simply being very respectful and understanding with my governors,” he continued. Otherwise, you’ll see if you don’t begin putting it into practice.

Tinubu’s comments come after the Supreme Court’s historic ruling on July 11, 2024, which affirmed the Federal Government’s lawsuit to require local governments to be financially independent.

A seven-member panel of the Supreme Court ruled unanimously that it is unlawful for state governments to keep or handle money intended for local councils.

According to Section 162(5–8) of the 1999 Constitution (as modified), the court mandated that allotments from the Federation Account be paid directly to local governments. Nonetheless, a few of states have persisted in using joint accounts to transfer the money.

In his remarks, Tinubu reaffirmed the need for governors to follow the ruling of the highest court and warned that any more infractions would result in federal intervention.

Our Supreme Court is the end aim. We must follow the rules. “The judgment must be respected,” he said.