Financial Autonomy: Court adjourns ALGON’s suit against FG, States

The Federal High Court in Abuja has adjourned a lawsuit filed by the Association of Local Governments of Nigeria (ALGON) against the Federal and State Governments till May 29, 2025.

The case, marked FHC/ABJ/CS/353/2025, was scheduled to come up before Justice Inyang Ekwo but could not proceed because the court did not sit. As a result, the case was postponed to the new date for mention.

The suit was filed by the Registered Trustees of ALGON in response to the alleged refusal of state governments to implement the Supreme Court’s July 11, 2024 judgment that granted full financial autonomy to the 774 local government councils across Nigeria.

In the suit, ALGON named the Attorney-General of the Federation, the Federal Republic of Nigeria, the Minister of Finance, the Central Bank of Nigeria, the Accountant-General of the Federation, the Minister of Budget and National Planning, and the Revenue Mobilisation, Allocation and Fiscal Commission as part of the 24 defendants.

Also joined were the Nigerian National Petroleum Company Limited, several commercial banks, and one Bello Lawal.

ALGON is asking the court to declare that, based on the Supreme Court ruling, the listed government agencies have no right to disburse funds meant for local governments through state officials without its consent. It also wants the court to mandate that local councils be represented at Federation Account Allocation Committee (FAAC) meetings where revenue distribution is decided.

According to ALGON’s counsel, Okechukwu Uju-Azorji, some defendants, especially the commercial banks, were allegedly acting as channels for distributing the funds in ways that violate the spirit of the Supreme Court decision.

However, the Central Bank of Nigeria (CBN), in a preliminary objection filed by its counsel, Sam Ologunorisa (SAN), urged the court to dismiss the suit, arguing that ALGON lacks legal standing and was neither a party nor a beneficiary in the Supreme Court judgment it is relying on.

Similarly, counsel for FAAC, Olawale Fapohunda (SAN), also argued that ALGON has no constitutional right to initiate the suit, which in turn strips the court of jurisdiction.

Lawyers representing the State Commissioners for Finance echoed the same position, pointing to the Allocation of Revenue (Federation Account, etc.) Act of 1982, which does not include local government representatives in FAAC membership.

ALGON, in response, filed a counter-affidavit asserting its legitimacy. It stated that it has been a registered association since May 10, 2002, with the core mission of protecting the interests and autonomy of local governments across the country.