The Federal High Court in Abuja is set to hear a suit on Tuesday, April 15, filed by the Association of Local Governments of Nigeria (ALGON) against the Central Bank of Nigeria (CBN) and 23 others over the implementation of local government financial autonomy.
The suit, marked FHC/ABJ/CS/353/2025, follows the Supreme Court’s July 11, 2024, decision granting financial independence to local councils. ALGON is seeking to stop the disbursement of local government funds without its prior approval and demands LG representation in the Federation Account Allocation Committee (FAAC).
Defendants in the case include the Attorney General of the Federation, the Minister of Finance, the CBN, state finance commissioners, the Accountant-General of the Federation, NNPC Limited, commercial banks, and others.
ALGON claims the ongoing disbursement of funds to LGs without its oversight undermines the Supreme Court’s judgment. It also alleged that commercial banks were being positioned as channels to divert LG funds.
Most defendants, including the CBN and FAAC, have challenged the suit. They argue ALGON lacks the legal standing to sue, not being a statutory body or a party to the referenced Supreme Court case. The CBN contends ALGON, being a registered NGO, cannot demand approval rights over public fund disbursements or FAAC processes.
The CBN has asked the court to dismiss the suit, labeling it an abuse of court process. FAAC representatives and state commissioners also insist ALGON is not entitled to FAAC participation under the law.
In its response, ALGON presented its incorporation documents and constitution, arguing that it lawfully represents local government interests and has standing to sue. It also accused one defendant of falsely claiming to lead the association.
The court is expected to determine both the merit of ALGON’s claims and whether it has the legal right to bring the case.
