The disbursement was made during the Federation Account Allocation Committee, FAAC, meeting held in Abuja on Wednesday.

According to a communiqué issued by FAAC, the N2.25 trillion distributable revenue comprised N1.48 trillion statutory revenue and N672.90 billion Value Added Tax, VAT.

It also comprised N32.34 billion Electronic Money Transfer Levy, EMTL, and N41.28 billion from Exchange Difference.

The communiqué said that the total gross revenue available in August was N3.64 trillion.

“From this amount, N124.84 billion was deducted for collection costs, while N1.29 trillion was set aside for transfers, interventions, refunds, and savings,” it said.

It said that VAT revenue rose to N722.62 billion in August compared to N687.94 billion in July, showing an increase of N34.68 billion.

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“From the N1.48 trillion statutory revenue, the Federal Government received N684.46 billion, state governments received N347.17 billion, and LGs received N267.65 billion.

“Oil-producing states got N179.31 billion as 13 per cent derivation revenue,” the communiqué said.

It said that out of the N672.90 billion VAT revenue, the federal government received N100.94 billion, state governments received N336.45 billion, and local governments received N235.52 billion.

“From the N32.34 billion EMTL revenue, the Federal Government received N4.85 billion, states got N16.17 billion, while local government councils received N11.32 billion.

“From the N41.28 billion Exchange Difference, the Federal Government received N19.80 billion, state governments received N10.04 billion, and the LGs received N7.74 billion.

“Oil-producing states got N3.70 billion as derivation revenue,” it said.

The communiqué further said that gross statutory revenue in August stood at N2.84 trillion, a drop of N231.91 billion compared to N3.07 trillion recorded in July.

It said that oil and gas royalties, VAT, and CET levies recorded increases, while revenues from Petroleum Profit Tax, PPT, Companies Income Tax, CIT, import duty, EMTL, and excise duty declined.

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This is according to a communiqué from FAAC made available by Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant-General of the Federation, OAGF.

The revenue was shared at the July 2025 Federation Account Allocation Committee, FAAC, meeting held in Abuja on Friday night.

According to the communiqué, the N1.818 trillion total revenue comprised statutory revenue of N1.018 trillion, Value Added Tax, VAT, revenue of N631.507 billion and Electronic Money Transfer Levy, EMTL, of N29.165 billion.

It also comprised Exchange Difference revenue of N38.849 billion and N100 billion Augmentation from Non-Mineral revenue.

The communiqué indicated that total gross revenue of N4.232 trillion was available in June.

“Total deduction for cost of collection was N162.786 billion while total transfers, interventions, refunds and savings was N2.251 trillion.

“Gross statutory revenue of N3.485 trillion was received for the month of June. This was higher than the sum of N2.094 trillion received in the month of May by N1.39 trillion,” it said.

It said that gross revenue of N678.165 billion was available from VAT in June 2025, lower than the N742.820 billion available in the month of May by N64.655 billion.

The communiqué indicated that from the N1.818 trillion total distributable revenue, the Federal Government received total sum of N645.383 billion and the state governments received a total sum of N607.417 billion.

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It said that the LGs received N444.853 billion, while the sum of N120.759 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

On the N1.018 trillion statutory revenue, the communiqué said that the federal government received N474.455 billion and the state governments received N240.650 billion.

“The LGs received N185.531 billion, and the sum of N118.256 billion (13 per cent of mineral revenue) was shared to the benefitting states as derivation revenue.

“From the N631.507 billion VAT revenue, the Federal Government received N94.726 billion, the state governments received N315.754 billion and the LGs received N221.027 billion.

“A total sum of N4.375 billion was received by the Federal Government from the N29.165 billion EMTL. The state governments received N14.582 billion and the LGs received N10.208 billion,” it said.

It further said that from the N38.849 billion Exchange Difference revenue, the Federal Government received N19.147 billion and the state governments received N9.712 billion.

“The LGs received N7.487 billion, while the sum of N2.503 billion (13 per cent of mineral revenue) was shared to the benefitting states as derivation revenue.

The communiqué said that the Federal Government received a total sum of N52.680 billion, the state governments received N26,720 billion and the LGs received N20.600 billion from the N100 billion Augmentation.

“In June, Companies Income Tax, Petroleum Profit Tax and EMTL increased significantly while Oil and Gas Royalty, VAT, Import Duty, Excise Duty and CET Levies decreased considerably,” it said.

Source: NAN

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The revenue was shared at the June meeting of FAAC in Abuja on Wednesday.

This is according to a communiqué issued at the end of the meeting, which was made available by Mr Bawa Mokwa, the Director, Press and Public Relations, Office of the Accountant-General of the Federation.

The communiqué said that the N1.659 trillion total distributable revenue comprised statutory revenue of N863.895 billion and Value Added Tax (VAT) of N691.714 billion.

“It also comprised Electronic Money Transfer Levy (EMTL) of N27.667 billion and Exchange Difference of N76.614 billion,” it said.

The communiqué said that total gross revenue of N2.942 trillion was available in the month of May.

It said that total deduction for cost of collection was N111.908 billion, while total transfers, interventions and refunds was N1.171 trillion.

“Gross statutory revenue of N2.094 trillion was received for the month of May. This was higher than the sum of N2.084 trillion received in the month of April by N10.023 billion.

“Gross revenue of N742.820 billion was available from VAT in May. This was higher than the N642.265 billion available in April by N100.555 billion,” it said.

The communiqué said that from the N1.659 trillion total distributable revenue, the Federal Government received the sum of N538.004 billion and the state governments received total sum of N577.841 billion.

“The LGCs received N419.968 billion, while the sum of N124.076 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

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“On the N863.895 billion distributable statutory revenue, the Federal Government received N393.518 billion and the state governments received N199.598 billion.

“The LGCs received N153.881 billion and the sum of N116.898 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

The communiqué further said that from the N691.714 billion VAT revenue, the Federal Government received N103.757 billion, the state governments received N345.857 billion and the LGCs received N242.100 billion.

It said that N4.150 billion was received by the Federal Government from the N27.667 billion EMTL, adding that the state governments received N13.833 billion and the LGCs received N9.683 billion.

“From the N76.614 billion Exchange difference revenue, the Federal Government received N36.579 billion and the state governments received N18.553 billion.

“The LGCs received N14.304 billion, while the sum of N7.178 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“In May, Companies Income Tax (CIT), VAT and Import Duty increased significantly while CET Levies, Petroleum Profit Tax (PPT), Oil and Gas Royalty and EMTL recorded decreases.

“Excise Duty increased only marginally,” it said.

Source: NAN

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A communiqué issued by Bawa Mokwa, the Director, Press and Public Relations, Office of the Accountant-General of the Federation, OAGF, said the revenue was shared at the April meeting of FAAC in Abuja.

The communiqué said that the total revenue of N1.578 trillion comprised statutory revenue of N931.325 billion, Value Added Tax (VAT) revenue of N593.750 billion, and Electronic Money Transfer Levy (EMTL) revenue of N24.971 billion.

“It also comprised Exchange Difference revenue of N28.711 billion,” it said.

It said that total gross revenue of N2.411 trillion was available in the month of March.

“Total deduction for cost of collection was N85.376 billion, while total transfers, interventions and refunds was N747.180 billion.

“Gross statutory revenue of N1.718 trillion was received for the month of March 2025. This was higher than the sum of N1.653 trillion received in February 2025 by N65.422 billion.

“Gross revenue of N637.618 billion was available from VAT. This was lower than the N654.456 billion available in February by N16.838 billion,” it said.

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The communiqué said that from the total revenue of N1.578 trillion, the Federal Government received N528.696 billion and the State Governments received N530.448 billion.

It said that the LGCs received total sum of N387.002 billion, and a total sum of N132.611 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“On the N931.325 billion statutory revenue, the Federal Government received N422.485 billion and the State Governments received N214.290 billion.

“The LGCs received N165.209 billion, and the sum of N129.341 billion (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue.

“From the N593.750 billion VAT revenue, the Federal Government received N89.063 billion, the State Governments received N296.875 billion and the LGCs received N207.813 billion,” it said.

It said that total sum of N3.746 billion was received by the Federal Government from the N24.971 billion EMTL, while he State Governments received N12.485 billion and the LGCs received N8.740 billion.

According to the communiqué, Petroleum Profit Tax (PPT) and Companies Income Tax (CIT) increased considerably while Oil and Gas royalty, EMTL, VAT, Excise Duty, Import Duty and CET Levies recorded decreases.

Source: NAN

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This was made known in a communiqué issued after the FAAC meeting on Thursday in Abuja.

According to the communiqué, the N1.727 trillion total distributable revenue comprised statutory revenue of N455.354 billion.

It also comprised distributable Value Added Tax, VAT, revenue of N585.700 billion, Electronic Money Transfer Levy, EMTL, revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.

The communiqué indicated that total gross revenue of N3.143 trillion was available in the month of November.

“Total deduction for cost of collection was N103.307 billion, while total transfers, interventions, and refunds was N1.312 trillion,” it said.

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It said that gross statutory revenue of N1.827 trillion was received for the month of November.

“This is higher than the sum of N1.336 trillion received in the month of October 2024 by N490.339 billion.

“Gross revenue of N628.972 billion was available from the VAT in November. This was lower than the N668.291 billion available in the month of October by N39.318 billion,” it said.

The communiqué said that from the N1.727 trillion total distributable revenue, the federal government received the total sum of N581.856 billion, and the state governments received N549.792 billion.

“The LGCs received the sum of N402.553 billion, and a total sum of N193.291 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

On the N455.354 billion statutory revenue, the communiqué said that the federal government received N175.690 billion, and the state governments received N89.113 billion.

It said that the LGCs received N68.702 billion, and the sum of N121.849 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“From the N585.700 billion VAT revenue, the Federal Government received N87.855 billion, the state governments received N292.850 billion, and the LGCs received N204.995 billion.

“A total sum of N2.257 billion was received by the Federal Government from the N15.046 billion EMTL. The state governments received N7.523 billion, and the LGCs received N5.266 billion,” it said.

It said that in November, Oil and Gas Royalty and CET Levies recorded significant increases, while Excise Duty, VAT, Import Duty, Petroleum Profit Tax, Companies Income Tax, and EMTL decreased considerably.

Source: NAN

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The governor acknowledged with great delight the support of Rivers people in the fight to salvage the local government system in the state as, according to him, it was at the precipice of doom because of the activities of some distractive political forces that wanted a grip on it.

Governor Fubara made the remark while charging the newly sworn-in 23 chairmen that emerged from the just-concluded Rivers State local government election, at the Executive Chambers of Government House in Port Harcourt on Sunday.

He said that the pressure to destroy the local government system in Rivers State became intense three days before election day when an attempt was made to invade the headquarters of the Rivers State Independent Electoral Commission, RSIEC.

The governor said, “But the truth remains, desperate situations require desperate measures. We were confronted with a situation where the local government of this state was heading to doom.

“And the truth about it is, because of the genuine love that we have for this state, we must salvage the local government election.

“And what we did, with the support of Rivers people, was to salvage the local government council. And to the glory of God, that has been done and dusted.”

Governor Fubara said with the elections now over, the remainder of the years in office, his administration would not deploy any form of undemocratic ways to confront or fight anybody.

He assured that, rather, he would continue to use the means of peace to ensure that the assets of Rivers State were protected.

He said, “We will assure the federal government that we are going to be party to anything leading to breakdown of law and order in this state.

“This is because we know quite alright that if there is breakdown of law and order in this state, Nigeria will suffer, and we are not going to be party to it. That is the reason why our standard, in terms of maturity, was high.”

Governor Fubara charged the newly sworn-in chairmen to ensure that they remained connected with the people in their council areas.

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He urged them to emulate his approach to peace so that they could be more patient with people and the situation without being violent.

He added, “For the newly sworn-in chairmen, I want you to see yourselves as servants. Once you see yourself as emperor, that is where the problem begins. Once you see yourself as the one who knows it all because of the power of the fund available to you, that is where you will start seeing crisis.

“But see this opportunity as a call to service. It is an opportunity for you to bring people together and to deliver to the people of Rivers State. We need development in the 23 local government areas.”

Governor Fubara said a few things might have happened in terms of provision of critical infrastructure and other levels of development, but added that more needed to be done.

He stated the need for them to see themselves as ambassadors of good leadership, and truly be well disposed to representing their people as their elected officers.

Governor Fubara emphasised: “Represent them well. Work for the betterment of your local government. Ensure that you are a servant leader. Open your doors, embrace everyone, and I assure you, that nothing is bigger and greater than that.

“That is the structure. When you work for the people, when you bring them in, when you help them, there is nothing bigger than that. So, that will be the ingredient of this administration.”

Governor Fubara said he was aware that his detractors were mobilising 20 people per political unit, instructed to attack them when they report to their various council secretariats to resume duties.

The governor, however, advised the chairmen not to confront the situation, should it happen or fight anybody.

He noted, “Please, if they are coming with violence, avoid them. The peace of this state is too important to us. It is public knowledge, everybody knows what they are planning. But please, I want to beg everyone of you, follow my approach. At the right time, you will always win, if you are patient and calculative.”

Governor Fubara also said that his administration had made promises to Rivers people that they would be led to the Promised Land of greater development in an egalitarian society where everybody is equal.

The governor urged them to key into that commitment, which will help them to work with so much enthusiasm as if the government would be ending the next day.

Governor Fubara warned them against greed and the urge to amass wealth indiscreetly because the tendency to getting everything will make them lose everything.

He added, “You must ensure that this opportunity God has given you at this critical time is protected. Don’t fail Him. Don’t fail these elders that have come here to witness this ceremony.

“We want this to be a landmark. This is the beginning of a new Rivers State, and I am going to make sure that I supervise it with all that I have.

“I will follow up with whatever is happening in the 23 local governments with everything because I believe this is not a time for me to make any mistake.”

Governor Fubara also said: “You must live above board. But I know with what you have done, your past responsibilities, and a few of you that I know personally, you are not going to disappoint us.

“We are doing this today for the world, and for Nigerians to know that the issue of local government election, swearing in, and resumption of office in Rivers State is over.

“So, maybe from tomorrow, the story may be different, not anymore: it can’t happen or it will be stopped. What we are talking about now is a different story.”

Governor Fubara said he felt so overwhelmed with joy with the feat achieved given what the state had been made to go through.

While expressing gratitude to God who has remained as an abiding strength, courage and sustainer, Governor Fubara appreciated President Bola Tinubu for his democratic approach while giving the government support.

He explained: “So, on behalf of the good people of Rivers State, I want to thank him (President Tinubu).

“I am so glad that the Chairman of the Governor’s Forum of PDP, and Governor of Bauchi State, Senator Bala Mohammed, is here with us to witness the ceremony. I want to assure you that I still remain a member of PDP,” Governor Fubara said.

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Secretary to the Government of the Federation, SGF, George Akume, inaugurated the committee on Tuesday in Abuja.

The SGF said the primary goal of the committee was to ensure that local government councils were granted full autonomy.

Akume added that the committee would ensure that the local government councils function effectively without interference from state governments.

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The committee chaired by the SGF has Minister of Finance and Coordinating Minister of the Economy, Attorney General of the Federation and Minister of Justice and Minister of Budget and Economic Planning as members.

Other members of the committee are Accountant General of the Federation; Central Bank Governor; Permanent Secretary (Federal Ministry of Finance); and Chairman, Revenue Mobilization Allocation & Fiscal Commission.

The committee also included representative of state governors and representative of local governments as members.

According to Akume, the move was in line with President Bola Tinubu’s efforts to give appropriate implementation to the provisions of the Constitution, which recognizes local governments as the third tier of government.

Source: NAN

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This is contained in a communique issued after FAAC meeting for August on Friday in Abuja.

According to the communique, the N1.358 trillion total distributable fund comprised statutory revenue of N161.593 billion.

It also comprised Value Added Tax, VAT, revenue of N582.307 billion and Electronic Money Transfer Levy, EMTL, revenue of N18.818 billion.

Also included in the total distributable revenue was Exchange Difference revenue of N581.710 billion and Solid Mineral revenue of N13.647 billion.

The communique stated that a total revenue of N2.613 trillion was available in the month of July.

“Total deduction for cost of collection was N99.756 billion, while total transfers, interventions and refunds was N1.155 trillion ” it said.

According to the communique, gross statutory revenue of N1.387 trillion was received for the month of July.

“This was lower than the sum of N1.432 trillion received in the month of June by N45.517 billion,” it said.

It said that gross revenue of N625.329 billion was available from VAT in July, adding that it was higher than the N562.685 billion available in the month of June by N62.644 billion.

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“From the N1.358 trillion total distributable revenue, the Federal Government received the total sum of N431.079 billion and the state government received N473.477 billion.

“The LGCs received N343.703 billion, and a total sum of N109.816 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

It said that on the N161.593 billion statutory revenue, the federal government received N58.545 billion and the state government received N29.695 billion.

It added that the LGCs received N22.894 billion, while the sum of N50.459 billion (13 per cent of mineral revenue) was shared to the benefitting states as derivation revenue.

It further said that in July, Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL, and CET Levies increased significantly.

“Furthermore, Companies Income Tax (CIT) recorded a decrease while Excise Duties increased only marginally.

“The balance in the Excess Crude Account is 473, 754 dollars.”

Source: NAN

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Governors have been acting tongue-in-cheek in their reactions to last Thursday’s verdict of the Supreme Court, which stripped them of their suffocating grip  over the money meant for local governments in the country. As a collective, the governors unreservedly endorsed the judgement. Chairman of the Nigeria Governors’ Forum and Kwara State Governor, AbdulRazak AbdulRahman, who spoke on behalf of the governors, said the forum welcomed the apex court’s ruling granting financial autonomy to the councils, describing the verdict as a relief from the burden on the governors. Addressing State House Correspondents on the matter after a meeting with President Bola Tinubu at the Presidential Villa, Abuja on Friday, Governor AbdulRazak was flanked by the Chairman of All Progressives Congress Governors’ Forum, Hope Uzodimma, and Chairman of Peoples Democratic Party Governors’ Forum, Dr Bala Mohammed, suggesting they were all in agreement with Governor AbdulRasak in his pronouncement.

“Our Attorney-General has applied for the enrolment order, which we will study carefully. But by and large, governors are happy with the devolution of power in respect of local government autonomy. It relieves the burden on governors. Our people really don’t know how much states expend in bailing out local governments, and that’s the issue there,” Governor AbdulRasak said, adding that his government in Kwara State had never tampered with local government funds.

However, it was learnt that the governors were not happy with the decision of the federal government to take them to court and are merely playing to the gallery. For instance, a few days after the NGF Chairman spoke, Oyo State Governor Seyi Makinde, who is of the opposition Peoples Democratic Party, described the case as a distraction. He questioned the sustainability of local governments receiving allocations from the federal government. Speaking with members of the Nigerian Union of Journalists in Ibadan, Oyo State, the governor said: “They said there is a judgment of the Supreme Court on local government autonomy. I think it is just a distraction. We must face the real issue that we have. The issue that we have is that we are not producing enough. We are not productive. Maybe it may be part of the problem, we want to have value for what is being shared but our problem is productivity.”

It may be argued that it is customary in our clime for an opposition governor to toe a different path from that of the President from a different party and this may be correct. However, the opposition of state governors to local council financial autonomy has never been in doubt. It has always been vainly concealed. In a report in The Punch newspaper of January 25, 2023, state houses of assemblies across Nigeria had rejected nine constitutional amendment bills, including the proposed legislation for financial and administrative autonomy for local government councils. The state assemblies were believed to have done so at the promptings of their governors who exert considerable influence over legislative processes at the state level. The rejected bills were part of the bills that the National Assembly transmitted to them for concurrence. The National Assembly had in March 2022, voted on 68 bills aimed at further amending the 1999 Constitution. At the end of the exercise, 44 of the bills were approved by both the Senate and the House of Representatives and transmitted to the state assemblies for concurrence. A simple majority of votes was required in at least two-thirds of state assemblies (24 out of 36) for the amendments to sail through and the amendments that sail through would then be sent to the President for assent.

The Senate, in a motion by the then Chairman of the Senate ad-hoc committee on Constitution Review, Ovie Omo-Agege, said during plenary that 27 out of the 36 state assemblies had forwarded their resolutions on the constitution amendment bills to the National Assembly. Presenting his committee report, Omo-Agege said 35 bills satisfied constitutional provision, having been approved by not less than 24 state assemblies. Nine bills could not scale through. Prominent among the bills voted against by the state parliaments was the one seeking to grant financial and administrative autonomy to the country’s local governments. Also among the bills that did not sail through are the ones seeking the abrogation of state-local government joint account and establishment of local government as a tier of government, meaning a majority of the state assemblies, and by extension the governors, never wanted local governments to have absolute freedom.

It’s perhaps in realisation of this, and the overarching need for local governments to be financially empowered to cater to the challenges at the grassroots that President Tinubu took upon himself the crusade for financial autonomy for the local governments. He mandated the Attorney-General of the Federation and Justice Minister, Chief Lateef Fagbemi, SAN, to institute a case against the governors at the Supreme Court. This is with a view to reinforcing democratic principles through full financial powers and effective devolution of power to the councils and ensuring genuine representation at the grassroots through periodic elections.

In the suit, the FG sought the enforcement of full autonomy of local governments in Nigeria and also for an order prohibiting state governors from embarking on unilateral, arbitrary and unlawful dissolution of democratically-elected local government chairmen, and constituting caretaker committees in their place. It also asked the court to make an order permitting the funds meant for the LGs to be directly channelled to them from the Federation Account in line with the provisions of the constitution as against how the governors take advantage of Section 162 (6) at the detriment of the local governments.

The Supreme Court’s verdict was very emphatic and unequivocal. All the reliefs sought by the FG were granted. The apex court ordered direct payment of council allocations, saying the 774 local councils in the federation should manage their funds without interference or deduction from any quarter. According to the apex court, it is unconstitutional for state governors to retain and utilise LG statutory allocations paid through them. The seven-man panel of the court led by Justice Emmanuel Agim also declared that a state has no power to appoint a caretaker committee, while it is mandatory for a local government council to be democratically governed.

“In this case since paying them through states has not worked, the justice of this case demands that the local government allocations from the Federation Account should henceforth be paid directly to the LG councils,” the apex court ruled. On the dissolution of democratically elected councils and appointments of caretaker committees by governors, Justice Agim held that it is a mandatory duty of the state governments or governors, under Section 7 (1) of the Constitution, to ensure their existence. “A democratically-elected local government is sacrosanct and non-negotiable,” the court added.

This landmark judgment is a critical step forward. It has now become imperative for the governors to file behind President Tinubu in ensuring that local councils become an independent and self-governing tier of government. The governors’ buy-in is important because when the chips are down, the state chief executives will still play an influential role in the election of local government chairmen. The governors must understand that to ensure genuine grassroots development and further strengthen our democracy, the local governments must be empowered financially.

Back to the issue of LG autonomy. There is still more work to be done. Like the state governors, the National Assembly must take concrete legislative actions to support the vision. The laws governing local government elections must be reworked to transfer the responsibility of conducting these elections to the Independent National Electoral Commission as opposed to the state independent electoral authorities, which are only independent in name.

This is part of the democratic re-engineering and restructuring the nation yearns for.

Indeed, not a few Nigerians are looking forward to the restructuring of the country under this president, given his antecedents. Apart from his numerous struggles for the entrenchment of democracy in the land, even as governor (1999-2007), he fought many battles with then President Olusegun Obasanjo on matters bordering on true federalism. Many would recall the issue of creation of 37 additional local governments in Lagos State during which he dragged the Federal Government to Supreme Court when President Obasanjo stopped the federal allocation to the state. In its ruling, the Supreme Court okayed the process leading to the creation of the councils and described the creation of the 37 new councils as legal, but declared them as inchoate because they had not been listed in the constitution as LGAs. Asíwájú Tinubu’s ingenuity came to play with the new councils becoming Local Council Development Areas. Today, these LCDAs have helped to expand the frontiers of development in Lagos.

There is also the matter of ownership of lands and granting of development plans in the states. Asiwaju Tinubu as Lagos governor filed a case at the Supreme Court to determine who had the power to control urban and regional planning in a state. Two of the issues determined were: whether the ownership rights of the federal Government over land in state territories include the power to control and regulate town planning and physical development in relation to such land.  And, whether all approvals, permits, and licences granted by the 1st defendant (federal government) or any of its agencies for any construction, building or physical development, or use of land in Lagos without the consent of the plaintiff are not illegal, null, and void. The Supreme Court granted the states power to grant building approvals and other development plans in the states where such federally-acquired lands are domiciled while not denying the federal government the right to also acquire lands in the states.

READ ALSO: Customs intercepts 26,000 litres of smuggled petrol in C’River

For President Tinubu, restructuring has indeed begun. The President has been working to reinforce existing laws, promoting their judicial interpretation and, in some cases, outright amendments in a bid to strengthen democracy and engender fiscal federalism. It is a measure of his commitment to restructuring that one of the first bills he signed into law as the country’s President was the Electricity Act 2023, which he signed on June 6, 2023, barely eighth day in office, marking a significant milestone in the sector. The new law focuses on enhancing the regulation and management of the electricity value chain with the active participation of the sub-national governments. This, thus far, has resulted in the process of devolution of regulatory powers to three states – Enugu, Ekiti, and Ondo – to set up their electricity markets.

Importantly, the Nigerian Fiscal Policy and Tax Reform Committee led by Mr. Taiwo Oyedele is still busy working on comprehensive tax reforms, including reforms to the country’s value-added tax (VAT) and other taxes that will restructure the system and further advance fiscal federalism in the end.

Back to the issue of LG autonomy. There is still more work to be done. Like the state governors, the National Assembly must take concrete legislative actions to support the vision. The laws governing local government elections must be reworked to transfer the responsibility of conducting these elections to the Independent National Electoral Commission as opposed to the state independent electoral authorities, which are only independent in name. This legislative initiative is crucial to eliminating the undue influence of state governors over the local government election process and ensuring the integrity of the polls. This change will be a significant move in complementing President Tinubu and Supreme Court’s efforts towards achieving genuine local government autonomy and enhancing democratic governance in Nigeria.

Speaking when he hosted some Yoruba elders on April 16, 2024 at the Presidential Villa, President Tinubu had pointed out that the matter of restructuring would be systematic, saying when the economy is properly on a firm footing, steps would be taken on restructuring so that it will be on a solid footing. “As I said in Akure, our approach to it would be as if a baby is learning how to walk. If the baby is rushed, it will fall,” he had said.

*Rahman is a Senior Presidential Aide.

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The Supreme Court judgement on July 11, granting financial autonomy to the 774 local councils and recognising them as the third tier of Nigeria’s governance architecture, was truly historic. It was perhaps the most remarkable judgement ever delivered by the apex court in recent times, as it used its power to interpret the law to give a different meaning to Section 162 of the Constitution.

Since 1999, governors have used this section to withhold and tamper with the funds federally allocated to the councils, using a joint account that has proven to be a honeypot of abuse.

Last Thursday, the Supreme Court described the payment of the allocations to the account as gross misconduct and scolded the governors for dissolving democratically elected councils and setting up caretaker committees.

The court ruled that caretaker committees are illegal and that councils run by them should not receive the federal allocation.

Henceforth, the court ruled that the allocations should go directly to the accounts of the 774 local councils.

Justice Emmanuel Agim, who read the lead judgment, said Nigeria runs a three-tier governance structure, where no one tier is subject to the whims and caprices of the other. He criticised the governors and the state assemblies for almost allowing the councils to go into extinction with their treatment of them.

The judgment was generally well received by Nigerians. According to reports, the verdict ignited jubilation by workers in some local councils as they sang the praises of the Tinubu administration.

However, some Nigerians have criticised it as an ‘assault’ on Nigeria’s Federalism as it has rewritten Section 162. My simple response to this school of thought is: Must we allow the law to stand still while the local councils die? The Supreme Court also said as much: Since the governors were using the section to perpetuate unconstitutional acts, the court must ensure that the constitution is not applied in a manner that supports its destruction.

In acknowledging the verdict’s import, former vice-president Atiku Abubakar described it as a win for the people. In a post on X, Atiku wrote: “The court’s ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country… The court’s verdict is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments.”

President Bola Tinubu, whose government instituted the case, welcomed the Supreme Court’s decision, affirming the spirit, intent, and purpose of the Constitution regarding the statutory rights of local governments.

“My administration instituted this suit because of our unwavering belief that our people must have relief, and today’s judgement will ensure that only those local officials elected by the people will control the resources of the people. This judgement is a resounding affirmation that we can use legitimate means of redress to restructure our country and economy to make Nigeria a better place to live in and a fairer society for all of our people.”

President Tinubu noted that the provision of some essential amenities and public goods, such as the construction and maintenance of roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has been abandoned owing to the emasculation of local governments.

He said the court’s decision to grant financial autonomy to the councils and restate other constitutional principles reinforced the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.

President Tinubu and his administration deserved the praise. President Tinubu has earned double appreciation as a defender of the local councils. As governor of Lagos, he sought the intervention of the same Supreme Court to establish the right of states to create councils in compliance with the provisions of the constitution. In a reverse role, as president, he has succeeded in seeking another intervention of the apex court to establish the right of the councils to survive and perform the role envisaged by the constitution.

Former President Muhammadu Buhari had sought to rescue the councils from the governors’ vice grip by using Executive Order 10, which he signed on May 22, 2020, to direct funds straight to the councils, the state legislature, and the judiciary. But the governors challenged his authority in a case filed at the Supreme Court. In a split judgment in 2022, the Supreme Court said President Buhari overreached his powers.

In his lamentation, while signing the executive order, President Buhari said:  “If the money from the Federation Account to the state is about N100 million, N50 million will be sent to the chairman (of local government), but he (the chairman) will sign that he received N100 million. The governor will pocket the balance and share it with whoever he wants to share it with. Then, the chairman of the local government must pay salaries. Go to hell with development. When he pays salaries, he will put the balance in his pocket. This is what’s happening in Nigeria.”

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President Tinubu, his successor, sought to combat the problem constitutionally by suing the governors.

The Attorney General and Justice Minister, Lateef Fagbemi, approached the Supreme Court in May, seeking to compel the governors of the 36 federating states to grant full autonomy to local governments in their domains in a suit marked SC/CV/343/2024. The suit, anchored on 27 grounds, accused the state governors of gross misconduct and abuse of power. He prayed that the Supreme Court would make an order stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.

In conclusion, while Nigerians await the full implementation of the Supreme Court verdict, one needs to appeal to the powerful governors to allow the councils to breathe. It is in the interest of the states to allow the blossoming of the third tier of government as it was before 1999.

The justice minister also requested an order restraining governors, their agents, and privies from receiving, spending, or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected local government system is in place in the states.

The court granted his prayers in the landmark ruling of July 11.

President Tinubu has always been concerned about the lack of governance at the grassroots. He believes that without fixing the problems at the councils, the objective of developing the country and spreading prosperity to the 200 million people will never be achieved. After all, the councils where the 200 million people live have been financially handicapped by the governors. He made the point clearly when he met in Abuja with the leaders of the Arewa Consultative Forum on May 30, about the same period when the Justice Minister approached the Supreme Court for the correct interpretation of Section 162.

President Tinubu, responding to the ACF’s demands for more roles by the Federal Government, urged the leaders to summon the governors. He said Nigeria, as a constitutional democracy, has not allowed the councils where we all live to flourish, citing the absurdity of politicians going to the locals for votes only to abandon them and leave for the capitals and Abuja after winning their votes.

As Nigerians celebrate the historic judgment, it is clear that some work still needs to be done to bring life back to the councils. One issue being raised is how to ensure that the council elections are truly competitive and not predetermined by the governors and the state independent electoral commissions. To solve this, some Nigerians have urged the National Assembly to pass a law that will require only the central Independent National Electoral Commission to conduct council elections.

The other problematic issue is the fear that governors will not allow the Supreme Court ruling to affect their domains, as they can always order the councils to send the money received from the Federal Accounts Allocation Committee back to the state coffers. Again, a solution to this possible abuse has been proffered. The EFCC, ICPC, and NFIU should prevent this by monitoring the councils’ accounts. While the governors enjoy immunity to cover their actions, the council chairmen and councillors do not have such cover as they can be arrested, tried, and jailed. The threat of arrest and prosecution can deter local political actors from collaborating with the governors.

In conclusion, while Nigerians await the full implementation of the Supreme Court verdict, one needs to appeal to the powerful governors to allow the councils to breathe. It is in the interest of the states to allow the blossoming of the third tier of government as it was before 1999.

Here are some of the benefits that the states should not let slip away: First, local governments will now have more control over their finances, which could lead to improved service delivery and governance at the grassroots level.

Second, with greater financial autonomy, local governments can provide better services to their constituents, such as healthcare, education, and infrastructure development. This will reduce the pressure on the state government from the people expecting such minimal provisions.

Third, the judgment could lead to greater accountability and transparency in local government administration.

As President Tinubu remarked after the landmark ruling, “The onus is now on local council leaders to ensure that the broad spectrum of Nigerians living at that level are satisfied that they are benefitting from people-oriented service delivery.

“The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us. This country belongs to all of us. By this judgment, our people, especially the poor, can hold their local leaders accountable for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses.”

*Onanuga is Special Adviser on Information and Strategy to President Tinubu

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