President Bola Tinubu has warned state governors that his administration will enforce local government autonomy, insisting that he may issue an Executive Order to ensure direct FAAC allocation to local councils if states continue to violate the law.
The President gave the warning on Friday while addressing the 15th National Executive Committee meeting of the All Progressives Congress at the State House Conference Centre, Abuja.
Tinubu expressed concern over the continued withholding of statutory funds meant for local governments, despite a recent Supreme Court judgment affirming their financial independence.
He cautioned that failure by governors to comply could compel the Federal Government to step in and implement direct FAAC allocation without further delay.
Speaking before party leaders, governors and members of the National Working Committee, the President said the apex court had clearly ruled on the matter and that all parties were bound to respect its decision.
“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,” Tinubu said.
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He added that while he had chosen to exercise restraint, persistent non-compliance would leave him with no option but to enforce direct FAAC allocation to local governments in line with the law.
Tinubu’s remarks followed the July 11, 2024 judgment of the Supreme Court, which declared it unconstitutional for state governments to retain or manage funds meant for local councils through joint accounts.
The court ordered that allocations from the Federation Account be paid directly to local governments, citing provisions of Section 162(5–8) of the 1999 Constitution (as amended).
Reiterating his position, Tinubu urged governors to respect the rule of law, stressing that adherence to the judgment was critical to strengthening grassroots governance and democratic accountability.