The Business NG - December 08, 2025

In this issue

BusinessNg Editorial Focus (Under 180 Words)

The renewed tension over local government autonomy highlights a troubling pattern in Nigeria’s governance structure — one where constitutional clarity exists, yet political will lags behind. The Supreme Court’s latest rebuke of the Federal Government for failing to implement its July 2024 judgment on direct LGA funding exposes a widening gap between judicial authority and executive compliance.

At the heart of the matter is the financial independence of Nigeria’s 774 local governments, a cornerstone for grassroots development. The court’s insistence that its judgment remains binding should have prompted swift administrative action. Instead, ambiguity and inertia persist.

The Osun State case further underscores the need for clearer institutional roles. While the Supreme Court rightly held that LGAs are autonomous entities capable of defending their rights, the ruling also exposes how state governments continue to insert themselves into local financial matters.

For Nigeria’s fiscal federalism to progress, all tiers of government must respect constitutional boundaries. Enforcing direct allocation to LGAs is not merely a legal obligation — it is a governance imperative capable of transforming service delivery, accountability, and rural development nationwide.

BusinessNg believes the time for half measures has passed; the system must finally work as designed.