BREAKING: Court Adjourns Hearing In ALGON’s Suit Against FG, State Governments
The hearing in the suit filed by the Association of Local Governments of Nigeria (ALGON) against the Federal and State Governments was delayed on Tuesday due to the absence of the presiding judge, Justice Inyang Ekwo, at the Federal High Court in Abuja.
Naija News reports that the case, which was scheduled for mention, could not proceed as the court did not sit. The matter has been rescheduled for May 29, 2025.
ALGON, the plaintiff in the case, is suing the Attorney-General of the Federation (AGF), the Federal Republic of Nigeria, and 23 other defendants, including the Minister of Finance, the Central Bank of Nigeria (CBN), state Commissioners for Finance, 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), several commercial banks, and one Bello Lawal.
The crux of the lawsuit is the failure of state governments to implement the Supreme Court ruling delivered on July 11, 2024, which mandated financial autonomy for local governments.
Nine months after the landmark judgment, ALGON claims the Federal Government has yet to enforce full compliance.
In suit number FHC/ABJ/CS/353/2025, ALGON is seeking an order that would grant the 774 local government councils representation at the Federation Account Allocation Committee (FAAC) meetings, where national revenue is shared.
The association also seeks a declaration that, in line with the Supreme Court’s ruling, the first to eighth defendants (including the AGF and Ministry of Finance) cannot disburse funds to the 774 local governments through the ninth to 23rd defendants without ALGON’s approval.
ALGON has alleged that key government bodies, including the AGF, Ministry of Finance, state Finance Commissioners, and the CBN, have undermined the Supreme Court’s decision, thereby frustrating its implementation.
The association, represented by its counsel Okechukwu Azorji, also accused commercial banks of acting as unauthorized channels for funds meant for local governments.
CBN And FAAC File Preliminary Objections
In response, the CBN, represented by Sam Ologunorisa (SAN), filed a preliminary objection, urging the court to dismiss the suit on the grounds of jurisdiction.
The apex bank argued that ALGON is not a constitutionally recognised legal entity and was not a party to the original Supreme Court case.
Similarly, FAAC’s counsel, Olawale Fapohunda (SAN), contended that ALGON lacks the legal standing (locus standi) to initiate the suit, challenging the jurisdiction of the court.
Lawyers representing state Finance Commissioners also argued that FAAC’s statutory structure, as defined under the Allocation of Revenue (Federation Account, etc.) Act 1982, does not include representation from the 774 local government councils.
In its defence, ALGON filed a counter-affidavit asserting its status as a legally registered association, incorporated on May 10, 2002, with the mandate to promote and defend local government autonomy in Nigeria. The association maintains that it has the legal right to challenge the Federal and State Governments in the matter.
