The Federal High Court sitting in Abuja will on Tuesday hear a suit filed by the Association of Local Governments of Nigeria against the Central Bank of Nigeria 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 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.
Following the Supreme Court judgment of July 11, 2024, which granted financial autonomy to LGs, ALGON filed a suit 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 meetings where allocations are discussed.
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 authorising, 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, urging the court to dismiss the suit for lack of jurisdiction.
The apex bank contends that ALGON is not a legal entity recognised 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.
“The plaintiff/respondent is neither a statutory body nor a government agency but rather an incorporated trustee (a non-governmental organisation) not listed in the Constitution or any statute.”
It further stated, “In precis, the plaintiff/respondent has no cause of action and locus standi to competently call on this honourable court to determine the questions brought before it and to grant the consequential reliefs sought. Also, this honourable court lacks the jurisdiction to hear and determine this suit as it is a clear abuse of the court process and urges this honourable court to be wary of the ploy of the plaintiff/respondent in inviting this honourable court to dispense its valuable time and resources on academic issues and usurp the powers of the legislative arm of government.”
The CBN maintained that under the Central Bank of Nigeria Act, 2007, only statutory bodies may interface with the CBN in banking matters, and ALGON does not fall into this category.
It argued that ALGON’s assertion—that its approval is required before commercial banks can act as bankers to local councils—is unfounded and unsupported by law.
The apex bank urged the court to dismiss the case with substantial costs awarded against the plaintiff.
Similarly, counsel for the Federal Account Allocation Committee, Olawale Fapohunda (SAN), argued that ALGON lacks the legal standing to bring the case, thereby robbing the court of jurisdiction.
“That being the case, since on the face of the plaintiff’s claim with requisite locus standi, we submit that it has also disrobed or divested this court of jurisdiction.
