Reporting by The Authority indicates that Senator Sunday Steve Karimi, Chairman of the Senate Committee on Services, has announced plans for new legislation to assist President Bola Tinubu in recovering trillions of Naira in local government allocations. These funds, allegedly diverted or withheld by various state governors over several years, are at the center of a renewed push for grassroots fiscal autonomy. The move is designed to ensure that the 774 local government areas receive their constitutional dues directly, bypassing state interference.
The legislative push follows a landmark Supreme Court ruling from 2024 that declared the control of local government resources by governors as unconstitutional. Despite this legal victory, several states have reportedly continued to disregard the apex court’s directive, prompting the National Assembly to consider stricter enforcement mechanisms. The recovered trillions are expected to be funneled into primary healthcare, local infrastructure, and basic education projects at the community level.
Validating reports from Vanguard and The Punch confirm that the Senate is prioritizing this fiscal cleanup. Vanguard noted that ‘this legislative backing is the final nail in the coffin for the controversial joint-account system,’ while The Punch quoted a constitutional lawyer who argued, ‘Without criminal consequences for governors who divert these funds, the Supreme Court ruling remains a paper tiger.’
Echotitbits take: This is a high-stakes power struggle between the federal center and the state executives. Recovering ‘trillions’ is an ambitious claim that will likely face fierce legal and political resistance from the Governors’ Forum. If successful, it could fundamentally shift the balance of power in Nigeria, making local government chairmen more powerful—and more accountable—than ever before.
Source: Thisdaylive – https://www.thisdaylive.com/2026/01/04/karimi-national-assembly-will-back-tinubu-on-recovery-of-trillions-of-naira-stolen-lg-funds/ January 5, 2026
Photo Credit: Thisdaylive
