The landmark court ruling that has ensured local councils bypass state boards and gain direct access to over N250 billion in dormant Universal Basic Education (UBEC) funds, notwithstanding, questions remain about the capacity of the third tier of government to bolster the fortunes of basic education, IYABO LAWAL reports.

As the court-sanctioned deadline for Universal Basic Education Commission (UBEC) to communicate the judgment of the Federal High Court, Abuja Division, to the 774 local councils elapsed, the third-tier of government has been handed the full authority to access Universal Basic Education funds and the opportunity to effectively take education to the grassroots and rescue millions of out-of-school children with hundreds of billions of naira to work with.

UBEC’s cumulative disbursements since 1999 exceeded N1 trillion, though over N250 billion remains unaccessed or unutilised as of mid-2025.

Reports from the National Bureau of Statistics (NBS) showed that the total enrolment in primary schools across Nigeria was about 29.2 million in 2024, with the national net enrolment for basic education at 68.1 per cent, below the 90 per cent target set by the Sustainable Development Goals (SDGs) for 2030.

According to the Federal Ministry of Education, 27 states and the Federal Capital Territory (FCT) had accessed N78.6 billion in UBE matching grants by 2025, representing a 65 per cent surge from January.

The federal government stated that the improved performance followed the implementation of the UBEC 2025–2030 Strategic Blueprint, which introduced a revised matching grant formula that prioritises equity, quality, accountability, and state-specific service delivery in basic education funding.

The funds for the UBE come from various sources as provided for in Section 11 of the Constitution, including the federal government’s block grant of not less than two per cent of its Consolidated Revenue Fund, contributions in the form of federal guaranteed credits, and local and international donor grants.

Now, the local government will be expected to contribute “not less than 50 per cent of the total cost of projects as its commitment in the execution of the project” to qualify for the federal government’s block grant.

For years, state governments had failed to provide this counterpart funding, leading to a massive accumulation of un-accessed resources at UBEC, while schools at the local level deteriorated.

Several analysts have noted that the capacity of all local councils to effectively manage resources varies.

While some urban and more prosperous local council areas may have competent administrative staff, many rural councils lack the technical expertise in procurement, financial management, and educational planning required to execute major projects.

Without support and capacity building, there is a risk of inefficiency or new avenues for mismanagement at the local level.

With the stage set by Justice Emeka Nwite’s judgment, local governments can directly access funds from UBEC, as sections of the UBE Act, 2004, were declared unconstitutional for interfering with local councils’ autonomy. The ruling voided Sections 11(2) and (3) of the UBE Act, 2004, finding them inconsistent with the 1999 Constitution as per the autonomy of local councils.

The court ruled that local councils should pay their counterpart funds and receive UBEC funds directly through their Local Government Education Authorities (LGEAs), bypassing State Universal Basic Education Boards (SUBEBs), reinforcing the independence of local councils as not being an appendage of the state government, and aligning with the Supreme Court’s pronouncements on financial autonomy for the councils.

The LGEAs are responsible for the day-to-day management and administration of primary schools, including staff employment, development, and salaries (for lower cadres), as well as the distribution of resources such as equipment and furniture.

Many noted that, with the LGEAs now answerable to the local council chairman and councillors rather than SUBEB, oversight is brought closer to the grassroots.

Community leaders, parents, and local civil society organisations can now more effectively demand transparency in how education funds are spent, as the decision-makers are their immediate elected representatives.

Many stakeholders expect that the ruling will ensure that funds intended for basic education effectively reach the grassroots level, potentially reducing the number of out-of-school children, and improving the quality of education by removing state-level delays or misuse.

Although primary education is officially free and compulsory, about 10.5 million children aged five to 14 years are not in school.

Only 61 per cent of six- to 11-year-olds regularly attend primary school, and only 35.6 per cent of children aged 36 to 59 months receive early childhood education.

Since its inception, UBEC has made significant strides in improving education, including constructing over 3,700 classrooms, establishing 34 model and SMART schools, providing over 142,000 units of furniture, and impacting over 181,000 learners.

The court’s decision is expected to bring relief to millions of Nigerian children who have been denied access to education due to circumstances beyond their control.

Constitutionally and financially, local councils remain major actors in primary education, but practically, it is SUBEB that manages schools through LGEA with little or no consultation with the local councils, regardless of their huge contributions,” a retired principal, Dr Ademola Adegunju has said.

He pointed out that local government has contributed immensely to the functioning of primary education, both in its mandatory and concurrent capacities with the state government, especially in the payment of teachers’ salaries and allowances, the provision of instructional materials, and the provision of classrooms and other infrastructure needed for the smooth running of primary education.

At 37 per cent, tertiary education accounts for the largest share of states’ education budgets. This is based on the three-year average from 2021 to 2023. Twenty per cent was allocated to public Junior Secondary Schools (JSS), which provide lower secondary education for students aged 12 to 14, and to public Senior Secondary Schools (SSS), which offer upper secondary education for students aged 15 to 17. Primary education, being the primary responsibility of local councils, accounted for only 13 per cent of state education budgets.

In 2022, only five states spent more on primary education than on the other levels of education. They included Bauchi (31 per cent), Borno (44 per cent), Delta (37.1 per cent), Jigawa (41.5 per cent), and Kebbi (60.2 per cent).

Across the board, only five states (Bauchi, Borno, Jigawa, Kebbi, and Rivers) maintained an allocation of at least 20 per cent to primary education.

“This is not surprising since primary education is generally funded by local councils, with supplementary funds provided through the UBE and state subventions.

In half of the states, less than 10 per cent of their total education budget is allocated to primary education,” said a report by the Nigeria Governors’ Forum. “Due to inconsistencies in state financial reporting, particularly regarding primary education spending by local councils, a comprehensive evaluation of educational spending effectiveness at this level is currently not possible.”

The report acknowledged that local councils are the bedrock of primary education in Nigeria, responsible for providing and maintaining primary schools, but are “typically supported by state governments.”

It noted that LGEAs “manage public primary schools in collaboration with State Primary Education Boards (SUBEBs)”, adding that local communities are expected to be directly involved in the management of public primary schools through district and village education committees and parent teacher associations (PTAs).

The constitution and the UBE Act delegate key implementation responsibilities to local stakeholders, including school-based management committees, community leaders, local education authorities, and parents.

But in many cases, these structures exist in name only. Budget allocations rarely reach them, capacity-building is minimal, and accountability is virtually nonexistent.

Based on the most recent data from UBEC and the Federal Ministry of Education, there has been a significant shift in how states access these funds.

Historically, billions of naira remained “unaccessed” because states failed to provide the required 50 per cent counterpart funding. However, the UBEC Fund Activation Strategy, launched in early 2025, has led to a 65 per cent increase in fund access.

As of late 2024, approximately N135 billion remained unaccessed across the states. By mid-2025, through high-level advocacy, this backlog began to clear.

The distribution of unaccessed UBEC funds across the states indicated that Abia recorded the highest arrears, totalling N4.28 billion, due to its inability to access matching grants from 2020 through 2023.

This trend was mirrored in Ogun, which accumulated N4.26 billion in unaccessed funds during the same period.

Imo also faced a significant backlog of N3.54 billion from 2021 to 2023. Meanwhile, several other states, including Anambra, Ebonyi, Adamawa, Edo, Bauchi, and Oyo, each missed their 2022 and 2023 funding cycles, resulting in individual arrears of N2.60 billion. Cross River followed these with moderate arrears of N2.04 billion.

While many states struggled, some showed signs of improvement or consistent performance. Katsina and Kaduna were notable for being among the first to access their 2024 grants, although they both still held N1.39 billion in outstanding funds from previous cycles.

Lagos State also held N1.39 billion in unaccessed funds after missing the 2023 cycle. Rivers demonstrated partial progress by accessing its 2023 grants for the first two quarters, leaving N0.69 billion in arrears, while Kano maintained a relatively high historical access rate, with only N0.58 billion in arrears. Benue emerged as the top performer with near-full access and only N0.02 billion in outstanding funds. Yobe, Kebbi, Niger, Ekiti, Bayelsa, Gombe, Akwa Ibom, Kogi, and Plateau, each held ₦1.39 billion in unaccessed funds as of late 2024.

The volume of “dormant” money within UBEC coffers expanded significantly during recent administrative transitions but began a downward trend in 2025.

In 2020, only N1.4 billion remained unaccessed, primarily due to failures by Abia and Ogun. This figure doubled to N2.8 billion in 2021 as three states failed to access their shares.

By 2022, the unaccessed amount jumped dramatically to N14.4 billion when seven states failed to meet requirements, and it further surged to N36.1 billion in 2023 as only 12 to 16 states successfully accessed their funds.

Although the statutory allocation was raised to N3.5 billion per state in 2024, many were still processing their matches mid-way through 2025. However, by the middle of 2025, a total of N78.6 billion was successfully unlocked and accessed by 27 states and the FCT following direct intervention by the Ministry of Education.

Meanwhile, stakeholders have lauded the move, describing the decision as overdue. They noted that the initiative would boost local government autonomy and true federalism.

They argued that the decision will allow councils to bypass the “bureaucratic bottlenecks” of state governments, ensuring faster, more direct deployment of funds for school infrastructure and teacher training.

Education consultant, Patrick Adiele, noted that direct access to funds will lead to better maintenance of primary schools and, in some cases, more consistent payment of teachers’ salaries.

However,some concerned stakeholders noted that while breaking state control is desirable, local government leaders may lack the capacity or accountability to manage these funds effectively, potentially leading to increased corruption at the grassroots level.