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ALGON Takes Legal Action Against CBN and Federal Agencies Over Local Government Autonomy
The Association of Local Governments of Nigeria (ALGON) has filed a lawsuit against the Central Bank of Nigeria (CBN) and several other federal agencies over the implementation of local government autonomy. The suit, marked FHC/ABJ/CS/353/2025, was filed at the Federal High Court in Abuja and names 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.....KINDLY READ THE FULL STORY HERE▶
ALGON seeks an order to prevent the disbursement of funds to local governments without its prior approval, claiming that the process is being manipulated to divert funds. Furthermore, ALGON is calling for local governments to have representation in the Federation Account Allocation Committee (FAAC), which discusses federal allocations. The suit follows the Supreme Court’s July 2024 ruling, which granted financial autonomy to local governments.
ALGON argues that federal agencies have hindered the implementation of the ruling by positioning commercial banks as intermediaries in managing local government funds. Meanwhile, several defendants have raised preliminary objections, with CBN arguing that ALGON is not a legally recognized entity under the Constitution and therefore lacks the standing to initiate the case.
The CBN further contends that ALGON is not a statutory body and cannot interface with the bank in banking matters. Other defendants, including the Federal Account Allocation Committee and state Commissioners of Finance, have echoed similar concerns, claiming that ALGON has no constitutional or statutory entitlement to represent local governments in the FAAC.
In response, ALGON has countered these objections, asserting its legal standing and right to sue, supported by its incorporation documents and constitution. The case is set to proceed, and the court will decide on the preliminary objections raised by the defendants.
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