The Association of Local Governments of Nigeria (ALGON) has filed a lawsuit against the Federal Government over the implementation of local government autonomy. The suit, marked FHC/ABJ/05/353/2025 and filed at a Federal High Court in Abuja, seeks to include local government councils in the Federation Account Allocation Committee (FAAC). Named as respondents are the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu; and the Accountant-General of the Federation. Other respondents include the Revenue Mobilization, Allocation and Fiscal Commission, the Central Bank of Nigeria, the Nigerian National Petroleum Corporation Limited, commercial banks, and all 774 local government councils. ALGON’s Secretary-General, Mohammed Abubakar, emphasised that it aims to ensure local governments receive direct disbursements from the federation, in line with the Supreme Court's directive. On July 11, 2024, the Supreme Court ruled that local government allocations must be paid directly, following a suit filed by Attorney-General Lateef Fagbemi, SAN, on behalf of the Federal Government. In the judgment delivered by Justice Emmanuel Agim, the apex court declared that states’ control of local government funds is unconstitutional. “The demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay local government allocations directly to the LGs or through the states. “In this case, since payment through states has not worked, the justice of this matter demands that LG allocations from the federation account should henceforth be paid directly to the LGs,” the court ruled. Despite the Supreme Court’s ruling nearly eight months ago, local government autonomy is yet to be implemented. Reports indicate that the Central Bank of Nigeria has asked all 774 local councils to submit at least two years of audited financial statements before they can receive direct allocations. The apex bank maintains that this requirement must be met before opening accounts for direct remittance of funds. Citing delays in implementation, ALGON’s Secretary-General, Mohammed Abubakar, emphasized the need for legal action to secure local governments' representation in the Federation Account Allocation Committee or any other body responsible for fund distribution. In its suit, ALGON urged the court to declare that disbursing local government funds through commercial banks or other agencies—without the councils' authorization—would be unlawful. Other prayers of the association include: “A declaration that the 1st to 8th defendants cannot disburse monies to the 774 local government councils in Nigeria, through the 9th to 23rd defendants or any other person whatsoever, without the plaintiff authorizing, approving said 9th to 23rd defendants or any other person whatsoever after conducting due diligence on them to avert any diversion of the funds of the local government councils. “A declaration that the 1st to 7th defendants or any other person whatsoever cannot discuss, approve, disburse or in any other way whatsoever deal with the monies accruing to the 774 local government councils in Nigeria without the representation of the local government councils at such deliberations, discussions, committees, howsoever called, including at the Federation Account Allocation Committee (FAAC) chaired by the 2nd defendant.”