A Federal High Court in Abuja will hear a lawsuit on Tuesday, filed by the Association of Local Governments of Nigeria (ALGON) against the Central Bank of Nigeria (CBN) and several others over the enforcement of financial autonomy for local governments.
The case, marked FHC/ABJ/CS/353/2025, was filed by ALGON’s Registered Trustees against the Attorney General of the Federation, the Minister of Finance, state Commissioners for Finance, and 21 other parties.
These include the Minister of Budget and National Planning, the Accountant-General of the Federation, the Revenue Mobilisation, Allocation and Fiscal Commission, the Nigerian National Petroleum Company (NNPC) Limited, multiple commercial banks, and one Bello Lawal.
The lawsuit comes after a Supreme Court judgment on July 11, 2024, granted financial autonomy to local governments. ALGON is now seeking a court order to stop the disbursement of funds to local councils unless it approves the process.
ALGON also wants local councils to have representation at the Federation Account Allocation Committee (FAAC) meetings, where government revenue is shared.
In the suit, ALGON argues that no funds should be distributed to local councils through any party unless the organization has approved it after proper checks.
They are asking the court to declare that all financial discussions and decisions affecting local councils must include their representatives.
ALGON’s Secretary-General, Mohammed Abubakar, confirmed the court hearing date in a statement on Sunday.
The group’s lawyer, Okechukwu Uju-Azorji, alleged that the government and financial institutions are already acting in ways that undermine the Supreme Court’s ruling.
He said commercial banks are positioning themselves to handle local government funds without oversight from ALGON.
However, most of the defendants have challenged the suit. They argue that ALGON has no legal right (locus standi) to file the case.
The CBN, represented by senior lawyer Sam Ologunorisa (SAN), filed a preliminary objection on March 24, 2025. They claim ALGON is not recognized by the Constitution or any law and was not part of the Supreme Court case it is now referring to.
The bank said ALGON is a non-governmental organization and cannot legally intervene in CBN’s dealings or claim authority over local government finances.
The CBN also argued that under the CBN Act of 2007, only government-recognized bodies can interact with it in banking matters—something ALGON is not authorized to do.
The FAAC, represented by Olawale Fapohunda (SAN), also filed an objection, saying ALGON has no role or legal right in Nigeria’s revenue-sharing system.
He emphasized that FAAC’s membership, as listed in the 1982 Revenue Allocation Act, does not include representatives from the 774 local government areas.
Fapohunda described ALGON as a “busybody” with no constitutional or statutory powers and asked the court to dismiss the case for lack of jurisdiction.
Additionally, the Incorporated Trustees of State Finance Commissioners, through administrative manager Jeff Otache, called the suit vague and a waste of the court’s time. He described ALGON as a non-governmental group with no formal ties to any of the defendants.
In response, ALGON submitted a counter-affidavit, asserting that it is a legally registered organization since May 10, 2002. It stated that its main mission is to protect the autonomy and interests of local governments in Nigeria.
The group also accused the 24th defendant of impersonating its President without proper authority, in violation of its constitution. ALGON presented its constitution and Corporate Affairs Commission registration to prove its legal status and right to sue.
