Chairman of the Senate Committee on Services and Senator representing Kogi West Senatorial District, Sunday Steve Karimi, has said the National Assembly will fully support President Bola Tinubu in enforcing financial autonomy for local governments and recovering trillions of naira allegedly diverted by state governments over the years.
Karimi said the legislature is prepared to enact comprehensive laws to compel strict adherence to the Supreme Court judgment of July 25, 2024, which ordered the direct disbursement of federal allocations to Nigeria’s 774 local government councils, describing the ruling as a watershed moment for grassroots governance.
Speaking while hosting his constituents during the yuletide break, the senator recalled that the apex court unequivocally ruled that state governors’ control of local government finances was unconstitutional and nullified the use of caretaker committees, insisting that only democratically elected local government officials should manage council resources.
According to him, the ruling was intended to strengthen grassroots democracy, deepen accountability, and improve service delivery at the local government level, which remains the closest tier of government to the people.
Despite the clarity and finality of the judgment, Karimi lamented that several state governments have continued to flout the ruling. He noted that President Tinubu recently warned, during a meeting of the National Executive Committee (NEC) of the All Progressives Congress (APC), that he may be compelled to issue an Executive Order to enforce compliance by defaulting governors.
Karimi said the President had exercised considerable restraint, even though he possesses the constitutional authority to insist on obedience to the Supreme Court ruling in the interest of national development and the rule of law.
“The National Assembly will not fold its arms while a clear judgment of the Supreme Court is treated with contempt,” Karimi said. “We will prioritise this matter and back the President with robust legislation — including retroactive provisions where applicable — to track the looting of local government funds, compel recovery, and ensure accountability.”
The senator alleged that trillions of naira meant for grassroots development have been systematically diverted by some state governors, their political godfathers, and close associates, even as the Tinubu administration has made unprecedented financial resources available to states and local government councils.
He observed that despite increased allocations, many Nigerians have seen little or no improvement in basic services at the local level, a situation he attributed to the sustained plundering of council funds.
Karimi linked the collapse of effective local government administration to the worsening security situation across parts of the country. He referenced recent remarks by the Chief of Defence Staff, who reportedly warned that the failure to allow local governments to function properly has created vast ungoverned spaces now exploited by terrorists, bandits, and other criminal elements.
According to Karimi, the diversion of local government funds has rendered councils dysfunctional and incapable of providing even the most basic services, including primary healthcare, rural roads, sanitation, and community security.
He further alleged that in some states, the diversion of funds has taken the form of organised financial fraud. While allocations are paid directly into local government accounts, state-controlled networks allegedly operate voucher racketeering schemes, processing documents for fictitious projects that are never executed.
Karimi said local government chairmen and supervisory councillors are often compelled to sign and approve fraudulent vouchers running into billions of naira monthly, adding that many officials dare not raise objections for fear of intimidation or threats to their lives.
“No projects are executed, yet funds are withdrawn steadily and regularly,” he said, describing the practice as institutionalised theft that has deprived millions of Nigerians of development at the grassroots.
The senator warned that governors who continue to undermine grassroots development, along with their collaborators, aides, and defenders, will ultimately face accountability once the National Assembly completes the necessary legislative framework.
“This level of impunity and organised plunder has no place in a 21st-century democracy,” Karimi said, adding that restoring financial autonomy to local governments remains critical to national development, security, and democratic consolidation.