LG autonomy: Tinubu threatens direct FAAC deductions, executive order

President Bola Tinubu on Friday warned state governors that he may issue an Executive Order to enforce direct allocation of funds to local governments if they fail to comply with the recent Supreme Court ruling granting financial autonomy to the third tier of government.

The President issued the warning while addressing members of the All Progressives Congress (APC) at the party’s 15th National Executive Committee (NEC) meeting held at the State House Conference Centre, Abuja.

Tinubu recalled that at the APC’s 14th National Caucus meeting on Thursday, he made it clear that local government autonomy must come with a properly funded mandate.

Reiterating his directive for immediate compliance, the President cautioned that continued resistance by state governments could compel him to order direct disbursement of local government funds from the Federation Account Allocation Committee (FAAC).

Addressing governors, members of the National Working Committee, and other party leaders, Tinubu said, “The Supreme Court has capped it for you again, saying, ‘give them their money directly.’ If you wait for my Executive Order, because I have the knife, I have the yam, I will cut it.”

He added, “I’m just being very respectful and understanding with my governors. Otherwise, if you don’t start to implement it, FAAC after FAAC you will see.”

Tinubu’s comments followed the landmark judgment delivered by the Supreme Court on July 11, 2024, which upheld the Federal Government’s suit seeking to enforce financial independence for local governments.

In a unanimous ruling, a seven-member panel of the apex court declared it unconstitutional for state governments to retain or control funds meant for local councils.

The court ordered that allocations from the Federation Account be paid directly to local governments, in line with Sections 162(5–8) of the 1999 Constitution (as amended), provisions that have largely been undermined through the operation of state-local government joint accounts.

The President stressed that compliance with the judgment was not optional, warning that persistent violations could trigger federal intervention.

“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” Tinubu said.