Tension Rises As Court Adjourns Explosive ALGON Case On LG Independence

The hearing of the lawsuit filed by the Association of Local Governments of Nigeria (ALGON) against the Federal and State Governments was postponed on Tuesday due to the absence of Justice Inyang Ekwo at the Federal High Court in Abuja.....KINDLY READ THE FULL STORY HERE▶

The case, which was slated for mention, could not proceed as scheduled because the court did not sit. It has now been adjourned to May 29, 2025.

ALGON is taking legal action against the Attorney-General of the Federation, the Federal Government, and 23 other respondents. These include the Minister of Finance, the Central Bank of Nigeria (CBN), state finance commissioners, 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 Corporation (NNPC), multiple commercial banks, and an individual named Bello Lawal.

At the heart of the suit is the failure of state governments to enforce the Supreme Court ruling delivered on July 11, 2024, which granted financial autonomy to local governments. ALGON claims that nine months after the judgment, the Federal Government has not ensured compliance.

In suit number FHC/ABJ/CS/353/2025, ALGON is requesting a court order to grant the 774 local government councils a seat at the Federation Account Allocation Committee (FAAC), which oversees the distribution of national revenue.

The association also seeks a declaration that, following the Supreme Court’s ruling, the first to eighth defendants—including the AGF and Ministry of Finance—cannot channel funds to local governments through the ninth to 23rd defendants without ALGON’s consent.

ALGON, represented by its lawyer Okechukwu Azorji, accused the AGF, the Finance Ministry, the CBN, and state finance commissioners of obstructing the execution of the Supreme Court’s decision. The group also alleged that several commercial banks are unlawfully managing funds meant for local governments.

Meanwhile, the Central Bank of Nigeria, represented by Senior Advocate of Nigeria Sam Ologunorisa, filed a preliminary objection, urging the court to dismiss the case for lack of jurisdiction. The CBN argued that ALGON is not a constitutionally recognized body and was not part of the original Supreme Court ruling.

Similarly, FAAC’s counsel, Olawale Fapohunda (SAN), also challenged ALGON’s legal standing to file the suit, citing jurisdictional issues.