In its originating summons, ALGON argues that the federal and state governments, as well as financial institutions, have begun taking steps that could undermine the Supreme Court decision. It also seeks a declaration that the 774 LGAs are entitled to representation at Federation Account Allocation Committee (FAAC) meetings—currently dominated by federal and state actors.
Abuja, Nigeria – The Federal High Court in Abuja will on Tuesday, April 15, begin hearing a landmark suit filed by the Association of Local Governments of Nigeria (ALGON) against the Federal Government and several others over the implementation of local government autonomy, particularly the disbursement of funds and representation at key allocation meetings.
The case, marked FHC/ABJ/CS/353/2025, pits ALGON against a host of defendants including the Attorney General of the Federation, the Minister of Finance, state Commissioners for Finance, the Central Bank of Nigeria (CBN), and 21 others. The suit also lists the Minister of Budget and National Planning, the Accountant-General of the Federation, the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), the Nigerian National Petroleum Company Limited (NNPCL), several commercial banks, and one Bello Lawal as co-defendants.
The legal action follows the Supreme Court’s July 11, 2024, judgment in suit SC/CV/343/2024, which upheld the financial autonomy of Nigeria’s 774 local government areas (LGAs). Relying on this ruling, ALGON is asking the court to issue a restraining order barring the disbursement of funds to LGAs without its prior consent and due diligence on the receiving entities.
In its originating summons, ALGON argues that the federal and state governments, as well as financial institutions, have begun taking steps that could undermine the Supreme Court decision. It also seeks a declaration that the 774 LGAs are entitled to representation at Federation Account Allocation Committee (FAAC) meetings—currently dominated by federal and state actors.
According to ALGON’s Secretary-General, Mohammed Abubakar, the group is determined to ensure local government interests are not sidelined in the ongoing allocation and disbursement of national resources.
ALGON’s lead counsel, Okechukwu Uju-Azorji, submitted that commercial banks—listed as the 9th to 23rd defendants—are allegedly positioning themselves as intermediaries for local government allocations, without accountability or oversight, a move ALGON deems contrary to the spirit of the Supreme Court judgment.
However, the case has been met with stiff opposition, with nearly all defendants filing preliminary objections. The Central Bank of Nigeria, represented by Senior Advocate of Nigeria, Sam Ologunorisa, filed a notice of preliminary objection dated March 24, 2025, asking the court to dismiss the suit for lack of jurisdiction and legal standing on ALGON’s part.
The CBN contends that ALGON is neither recognised in the Nigerian Constitution nor in any statutory law, and was not a party to the Supreme Court suit it now references. The apex bank further argued that under the CBN Act, 2007, only statutory bodies are authorised to interface with the CBN, and ALGON, being an incorporated trustee and a non-governmental body, does not qualify.
It also dismissed ALGON’s claim of requiring its approval before commercial banks can act as bankers to local councils as baseless and legally unsupported, urging the court to throw out the case and award substantial costs against the group.
Counsel to the Federation Account Allocation Committee, Olawale Fapohunda (SAN), echoed similar arguments, stating that ALGON lacks the constitutional and statutory authority to partake in FAAC processes, let alone challenge them in court. Fapohunda described ALGON as a “busybody” with no role in Nigeria’s revenue-sharing structure.
He cited Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982, which outlines the statutory membership of FAAC—excluding any representation from local governments. Fapohunda, also appearing for the state Commissioners for Finance, said ALGON is not recognised under any law to enforce rights not conferred upon it.
In an affidavit, Jeff Otache, administrative manager at the office of the Incorporated Trustees of State Finance Commissioners, described ALGON’s suit as “vague, imprecise, evasive and hollow,” and a clear abuse of court process. He noted that ALGON is not part of any of the defendant bodies and lacks any legal nexus to their statutory obligations.
Responding to the objections, ALGON filed a counter-affidavit asserting its legitimacy, disclosing that it was duly incorporated on May 10, 2002. It submitted its constitution and registration documents from the Corporate Affairs Commission as proof of its legal status and right to initiate litigation in defense of local governments’ interests.
The association also raised alarm over the activities of the 24th defendant, whom it accused of impersonating its president in contravention of its internal regulations.
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