The Federal High Court in Abuja is preparing to hear a case filed by the Association of Local Governments of Nigeria (ALGON) against the Central Bank of Nigeria (CBN) and several federal bodies concerning the implementation of local government autonomy.
Naija News reports that the case, filed under suit number FHC/ABJ/CS/353/2025, was brought by the Registered Trustees of ALGON. The defendants include the Attorney General of the Federation (AGF), the Minister of Finance, state Commissioners for Finance, and the Minister of Budget and National Planning, among others.
This legal action follows a Supreme Court ruling delivered on July 11, 2024, which affirmed the financial independence of local government councils.
ALGON is requesting a court order to prevent any disbursement of funds to local governments unless it gives prior approval.
The group is also pushing for the 774 local government councils to be granted representation in the Federation Account Allocation Committee (FAAC), which handles discussions and decisions on federal allocations.
In its originating summons, ALGON is making the following key requests:
Financial Oversight: A declaration that, in line with the Supreme Court ruling of July 11, 2024, the first to eighth defendants are not permitted to disburse funds to the 774 local government councils via the ninth to twenty-third defendants or any other means without ALGON’s consent and proper checks to avoid fund mismanagement.
Representation at FAAC: A declaration that discussions, approvals, or disbursements of local government allocations should not occur without the inclusion of local government representatives at FAAC meetings, which are chaired by the Minister of Finance.
ALGON Accuses Federal Agencies of Undermining Supreme Court Ruling
In its complaint, ALGON argues that despite the Supreme Court’s efforts to enhance local government autonomy, key federal agencies like the AGF’s office, the Ministry of Finance, state finance commissioners, and the CBN have worked against its enforcement.
ALGON further alleges that certain commercial banks are positioning themselves as intermediaries in the distribution of funds meant for local governments.
However, many of the defendants have challenged the case, filing preliminary objections that question ALGON’s legal standing.
The CBN, through its counsel Sam Ologunorisa (SAN), filed a notice of preliminary objection dated March 24, 2025. It argues that ALGON is not recognized under the Nigerian Constitution or any statute and was not a direct party or beneficiary of the Supreme Court judgment on which it is relying.
The apex bank stated, “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 continued, “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 also pointed out that only statutory bodies are permitted to deal with the CBN under the Central Bank of Nigeria Act, 2007, and that ALGON does not qualify under this definition. The bank dismissed ALGON’s claim that its approval is needed before commercial banks can serve local councils as legally baseless and asked the court to dismiss the case with significant costs.
Federal Agencies Argue ALGON Lacks Legal Standing
Similarly, Olawale Fapohunda (SAN), counsel for the Federation Account Allocation Committee, argued that ALGON lacks the legal right to bring the case, which, in his view, strips the court of jurisdiction.
He said, “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.
We submit that by the tenor of the plaintiff’s claim before this court, it is obvious that the plaintiff is a mere busybody who has no statutory standing in the business of revenue sharing in Nigeria.”
Fapohunda, also representing the state Commissioners of Finance, noted that members of FAAC do not include representatives of the 774 LGAs, contrary to ALGON’s claim. He cited Section 6(1) of the Allocation of Revenue (Federation Account, etc.) Act, 1982, which lists the recognized members of FAAC and excludes local governments.
He stated, “The plaintiff is not recognised under the Constitution and cannot enforce rights that were never conferred upon it by the law.”
Speaking further on behalf of the commissioners, Fapohunda stressed that ALGON has no legal or constitutional right to participate in FAAC’s functions.
In an affidavit, Jeff Otache, the administrative manager for the Incorporated Trustees of State Finance Commissioners, described ALGON’s case as lacking clarity and legal weight.
He said, “The suit of the plaintiff is conjectural, vague, imprecise, evasive and hollow. That hearing the suit is a sheer waste of judicial time and it is in the interest of justice to dismiss or strike out the suit for want of jurisdiction.
I know as a fact that the plaintiff is not a member of any of the defendants and as such cannot force itself on them. I also know for a fact that the plaintiff is a non-government organisation that has no nexus with the defendants’ statutory duties. That the plaintiff/respondent is not entitled to any of the reliefs sought.”
ALGON Defends Its Legal Status
In response, ALGON filed a counter-affidavit defending its legal capacity to sue. It said it was registered as an association on May 10, 2002, with the primary aim of safeguarding the interests and autonomy of local governments in Nigeria.
ALGON also accused the 24th defendant of falsely presenting himself as its President, contrary to the group’s constitution. The group submitted its founding documents and Corporate Affairs Commission registration to prove its legal standing and justify its position in the suit.
