A Federal High Court, FHC, sitting in Abuja will on Tuesday entertain a suit filed by the Association of Local Governments of Nigeria, ALGON, challenging the Central Bank of Nigeria, CBN, and others over the implementation of Local Government autonomy.
The suit, marked FHC/ABJ/CS/353/2025, was instituted by the Registered Trustees of ALGON against the Attorney General of the Federation, the Minister of Finance, state Commissioners for Finance, and 21 others.
Other defendants in the suit include the Minister of Budget and National Planning; Accountant-General of the Federation; the Revenue Mobilisation, Allocation and Fiscal Commission; the Nigerian National Petroleum Company Limited, various commercial banks, and one Bello Lawal.
This is coming on the heels of the Supreme Court judgment of July 11, 2024, which granted financial autonomy to LGs.
ALGON filed the suit at the FHC seeking an order restraining the disbursement of funds to Local Governments without its approval.
Additionally, ALGON demands that the 774 Local Councils be granted representation at Federation Account Allocation Committee, FAAC, meetings where allocations are discussed.
ALGON Secretary-General, Mohammed Abubakar, confirmed the suit hearing date to The PUNCH on Sunday.
In its originating summons, ALGON trustees’ prayers include: “A declaration that, given the Supreme Court decision on 11th July 2024, in Suit No: SC/CV/343/2024, between Attorney-General of Federation vs Attorney-General, Abia State and 35 Ors, Constitution of ALGON, 1999, 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, given the Supreme Court decision on July 11, 2024, 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 chaired by the 2nd defendant.”
Furthermore, ALGON contends that, while the Supreme Court judgment intends to liberate the Local Government administration, the AGF, Ministry of Finance, state Commissioners of Finance and CBN have taken “precipitate action to frustrate the implementation of the decision.”
ALGON, through its counsel, Okechukwu Uju-Azorji, further claimed that the 9th to 23rd defendants, which are the commercial banks, are already taking steps “to be the conduit pipe or warehouse from which any money or allocation meant for the Local Government Councils will be collected.”
Meanwhile, nearly all defendants have filed preliminary objections, challenging ALGON’s locus standi to initiate the suit.
The CBN, represented by Sam Ologunorisa (SAN), submitted a notice of preliminary objection dated March 24, 2025. He urged the court to dismiss the suit for lack of jurisdiction.
The apex bank contends that ALGON is not a legal entity recognized by the Constitution or any statute. And was not a party or beneficiary in the Supreme Court case upon which it now relies.
“The plaintiff/respondent was not a party to or named as a beneficiary of the Supreme Court decision in Attorney General of the Federation vs Attorney General of Abia State and Ors. SC/CV/343/2024 was delivered on 11th July 2024, upon which the plaintiff/respondent purports to rely for this suit