President Bola Ahmed Tinubu has cautioned state governors that he could be compelled to issue an Executive Order to ensure direct funding for local governments should they fail to adhere to a recent Supreme Court judgment affirming the financial independence of Nigeria’s third tier of government.
Tinubu issued the warning on Friday while addressing the 15th National Executive Committee meeting of the All Progressives Congress at the State House Conference Centre in Abuja.
In a pointed but indirect reference to governors allegedly withholding statutory allocations meant for local councils, the President cautioned that continued disobedience could lead him to mandate direct disbursement of local government funds from the Federation Account Allocation Committee.
Speaking before NEC members, including governors, National Working Committee officials 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, fact after fact, you will see.”
Tinubu’s comments came in the wake of the July 11, 2024, landmark Supreme Court ruling that upheld the Federal Government’s case seeking to enforce financial autonomy for local governments.
In a unanimous verdict, a seven-member panel of the apex court held that it is unconstitutional for state governments to hold or administer funds allocated to local councils.
The court directed that allocations from the Federation Account be paid directly to local governments, as stipulated in Section 162(5-8) of the 1999 Constitution (as amended), a provision long undermined by the widespread use of joint accounts by state governments.
Reiterating his position, Tinubu stressed the obligation of governors to comply with the ruling, cautioning that persistent breaches could invite federal action.
“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” he insisted.