
President Bola Tinubu has warned state governors that the Federal Government could begin deducting local government allocations directly from the Federation Account if states continue to block financial autonomy for councils.
The warning was issued on Friday during the 15th National Executive Committee meeting of the All Progressives Congress held at the State House in Abuja, where governors, party leaders, and members of the APC National Working Committee were present.
Tinubu’s remarks followed ongoing resistance by some state governments to fully implement a Supreme Court ruling that ordered direct allocation of funds to local governments. The President suggested that an Executive Order could be issued if compliance remains slow or selective.

Speaking pointedly, Tinubu reminded governors that the apex court had settled the matter, stressing that continued violations could attract federal action. He indicated that the powers available to the presidency would be used if necessary to enforce the judgment.
The President’s warning is rooted in a landmark judgment delivered by the Supreme Court on July 11, 2024, which upheld the financial independence of local governments across the country. In that ruling, the court declared it unconstitutional for state governments to retain or manage funds meant for local councils.
The judgment ordered that allocations from the Federation Account be paid directly to local governments, in line with provisions of the 1999 Constitution. Despite the ruling, many states have been accused of continuing the practice of routing council funds through joint state–local government accounts.

Tinubu said the federal government expects full compliance with the judgment, noting that the rule of law must prevail regardless of political convenience. He warned that failure to act could leave the presidency with little choice but to intervene administratively.
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According to the President, enforcing local government autonomy is critical to strengthening grassroots governance and ensuring that funds meant for development at the community level are not diverted.
The comments mark the strongest signal yet from the presidency that patience is wearing thin, as pressure mounts on governors to align state practices with the Supreme Court’s decision.