Across Nigeria, a number of local governments are on the brink of collapse. Basic services, including healthcare, education, and infrastructure, are often scarce or non-existent. In some areas, militants and criminal gangs have exploited the governance vacuum, fuelling insecurity.

Over the years, some state governments have gradually eroded local financial and administrative powers. Federal funds meant for local authorities, but held in joint accounts controlled by the states, are diverted or misappropriated.

Often, whatever remains only covers salaries of local staff, leaving little or nothing at all for services for citizens.

In over half of Nigeria's states, local governments are no longer run by elected officials. Anambra State, for example, has not seen a local election since 2014. Instead of organising elections, as per their remit, states have begun appointing ‘caretaker committees’ or sole administrators to manage local governments. The appointees are completely beholden to the governors, their political parties, and state agendas.

The problem with this, explains John Mutu, Team Leader for the Engaged Citizens pillar of the UK-funded Partnership to Engage, Reform and Learn (PERL) program, is that that the tendency is that “governors appoint their cronies to run the affairs of local government, and the person, because he’s an appointed person, cannot question how much funding was given to him vis-a-vis how much he was expecting.”

Even where local elections occur, the people running them are appointees of state governors. In most cases, the elections are neither transparent nor credible, with the ‘winner’s’ party affiliation aligning neatly with that of the governor.

On top of this, when a new governor comes to power, some dissolve the local government councils, or shorten their tenure, so they can fill positions with their supporters.

Mutu clarifies that there are a few state governors who have taken a stand against this trend, serving as a model to others. However, without legal clarification on the powers of state governors over local governments, it’s unlikely that they can influence a positive change in behaviour on a national scale.

Years of Coalition Building and Reform Efforts

Mutu has spent 14 years working on governance reforms through PERL and its predecessor program, the State Accountability and Voice Initiative (SAVI). Alongside his team, he has been supporting Nigeria’s National Assembly in drafting constitutional amendments, including to stipulate that federal funds be paid directly to local governments, and that elected officials be the only ones allowed to manage local government.

To become ratified, constitutional amendments require approval of 24 of Nigeria’s 36 state houses of assembly. States voted on the issue in 2015, 2019, and 2023, each time in greater numbers in favour of the change, yet still failing to meet the threshold. The 2023 outcome fell short by six states, but it marked significant progress from the initial attempt in 2015, where not one state voted in favour.

This shift reflected growing public and political support for local government autonomy, including from state legislators increasingly daring to vote against their governors’ wishes.

SAVI stepped into this arena in 2015, and over the past eight years, its successor PERL has played a key role in building momentum for change. Back in 2015, organised labour was divided on the issue. The influential national teachers’ union opposed the constitutional amendment, fearing that local governments could misuse funds and that teachers' salaries might go unpaid.

Some civil society groups also felt giving local governments control of funding posed a big risk.

In response, PERL facilitated discussions between unions, civil society organisations, the National Assembly, and other key stakeholders to address concerns. Mutu and his colleagues argued that local government is easier to hold accountable, with representatives much more accessible than a distant, opaque state-level system.

PERL also engaged the media, bringing the issue to the attention of the public. The team reframed the issue from one of local government worker welfare, which had never resonated with Nigerians, to one of development and security, making local governance a national issue.

The teacher’s union came on board, joining a growing coalition to advocate for change.

“It was this coalition platform that changed the dynamics for the campaign for local government autonomy,” says Akeem Ambali, president of the national union of local government employees. “In the past, each organisation had different agenda and the forces against local government autonomy took advantage of the fragmentation... Now, the table has turned.”

In parallel, PERL helped several states establish local accountability mechanisms to ensure that, if funds were sent directly to local governments, they would be used transparently.

In response to the growing demands for local government reform spurred on by PERL, in 2019 the Federal Government issued guidelines on the management of local government finances to reduce corruption and abuse in the process. The powerful Nigerian Governors Forum challenged the intervention, but was unsuccessful, marking a turning point in efforts to stem the tide of reform.

Supreme Court Ruling Sparks Hope

Then, in May 2024, the Attorney General of the Federation and the Minister for Justice filed a lawsuit against state governors for violating the constitution, which even without an amendment, provided that local governments have access to federal revenue and contribute to healthcare, education, sanitation, agriculture, and other services.

On 11 July 2024, Nigeria’s Supreme Court issued a landmark ruling supporting financial and administrative autonomy of local governments. The court declared it unconstitutional for state governors to withhold funds allocated to local governments, to dissolve local government councils, or to appoint caretaker committees and sole administrators.

“This reform is transformational. It is at the heart of our governance, and it’s at the heart of our democracy,” Mutu says. “If it succeeds, it will change the entire governance architecture.”

“From a development programming perspective, this is a huge opportunity,” he adds. “So many programs – whether working in health, education, economic growth - have been hamstrung by lack of government autonomy. This could change everything.”

However, the Supreme Court judgement is only a political statement. Actual implementation requires a lot of work, and the opposition will not give up quickly. Governors are trying strategy after strategy to halt reforms, including underhand tactics and intimidation to maintain power and control over financial flows.

“If we miss it, if the momentum dies down,” Mutu says, “we will go back to status quo.”

Since the court’s ruling, PERL has organised meetings with labour unions, civil society groups, and the National Assembly to discuss the judgement’s implications and agree what needs to be done to address emerging challenges, and how to seize opportunities ahead of implementation. At the same time, the program is continuing to work with the National Assembly on amending the constitution, preparing for the next state-level vote.

In some ways, the work is just beginning.