President Bola Tinubu has threatened state governors with direct Federation Account Allocation Committee, FAAC, deductions, cautioning that his administration may resort to an Executive Order to ensure direct financial allocations to local governments if states continue to disregard a recent Supreme Court judgment granting autonomy to the third tier of government.
The President issued the warning on Friday while addressing party leaders at the 15th National Executive Committee meeting of the All Progressives Congress, APC, held at the State House Conference Centre in Abuja.
In a pointed reference to the long-standing practice of state governments controlling local government funds, Tinubu indicated that persistent non-compliance could compel the Federal Government to bypass states and remit council allocations directly through FAAC.
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Speaking before NEC members, including governors, National Working Committee officials and other APC 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.”
The President’s comments came in the wake of the Supreme Court’s July 2024 judgment, which upheld the Federal Government’s case seeking to enforce full financial independence for local councils across the country.
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In that ruling, a seven-member panel of the apex court unanimously declared it unconstitutional for state governments to hold or administer funds allocated to local governments.
The court further directed that allocations from the Federation Account be paid directly to local councils, as stipulated in Section 162(5–8) of the 1999 Constitution (as amended), a provision that has largely been undermined through the operation of state-local government joint accounts.
Reinforcing his position, Tinubu stressed that governors must obey the court’s decision, warning that continued violations could attract federal action.
“The ultimate goal is our Supreme Court. We have to comply. We have to respect the judgment,” he insisted.
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