The Federal Government of Nigeria, under the leadership of President Bola Tinubu, has directed all state governments to open accounts with the Central Bank of Nigeria (CBN) for each Local Government Area (LGA) within their jurisdiction. According to SaharaReporters, the directive was communicated through a circular recently issued by the Office of the Accountant General of the Federation. The designated signatories for these accounts will be the respective local government chairmen and their directors of administration or finance. It was further gathered that the decision was ratified during the most recent Federation Accounts Allocation Committee (FAAC) meeting, held a few days ago. A follow-up circular is expected to be issued to reinforce and update the earlier directive regarding the establishment of CBN accounts for LGAs. This move comes amid renewed debates over local government autonomy in Nigeria. In July 2024, SaharaReporters reported that the Supreme Court delivered a landmark judgment mandating the Federal Government to disburse funds directly to local governments governed by democratically elected officials. Justice Emmanuel Agim, who delivered the judgment, ruled that it is unconstitutional for state governments to withhold allocations meant for LGAs. The judgment referenced Section 162(3) of the Nigerian Constitution, which requires such funds to be allocated directly to the local governments. The Supreme Court’s ruling was seen as a major step toward enforcing financial autonomy at the grassroots level and ensuring that local governments can function effectively and independently. In June 2024, the Supreme Court had reserved judgment in a suit filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN). The suit, which named all 36 state governors as defendants, seeks to grant full autonomy to LGAs across the country. The case was heard by a seven-member panel of the apex court led by Justice Garba Lawal. The push for LGA autonomy stems from longstanding concerns over the mismanagement of local government funds by state governments. Many states have been accused of diverting allocations meant for grassroots development, thereby hampering progress and infrastructure at the local level.