In a landmark ruling with major implications for grassroots governance and education financing, the Federal High Court in Abuja has declared Nigeria’s local governments an autonomous third tier of government, effectively ending state government control over the disbursement of Universal Basic Education (UBE) funds.
Justice Emeka Nwite, delivering his judgment on October 13, 2025, held that local governments are distinct and constitutionally empowered tiers of government under the 1999 Constitution, not extensions or appendages of state governments.
The court struck down Sections 11(3) and 13(1) of the Universal Basic Education Act, 2004, ruling they were inconsistent with constitutional provisions, including Sections 7(1) and (5) and Item 2(a) of the Fourth Schedule of the Constitution and are thereby null and void. These sections had previously placed Local Government Education Authorities (LGEAs) under the supervision of State Universal Basic Education Boards (SUBEBs).
The judgment orders that all 774 local governments, through their respective LGEAs, must be allowed to: Pay counterpart funds, and Apply for and receive federal UBE grants directly from the Universal Basic Education Commission (UBEC), without going through state governments or SUBEBs. The ruling makes direct access mandatory, specifying that local governments “shall,” not just “may,” receive these funds directly.
The court has directed UBEC and the Attorney-General of the Federation to formally communicate the judgment to all 37 State Universal Basic Education Boards and the 774 LGEAs nationwide within three months. The deadline for this compliance is January 14, 2026.
The suit, marked FHC/ABJ/CS/1536/2020, was filed by Sesugh Akume against UBEC and the Attorney-General of the Federation. Akume challenged the constitutionality of UBE Act provisions that required federal education funds to be channelled through state boards and placed LGEAs under state supervision.
The ruling ends a longstanding practice under which SUBEBs managed UBE funds on behalf of local governments, a system widely criticised for inefficiency, corruption, and failure to access available federal grants. UBEC has acknowledged that hundreds of billions of naira in education funds remain unclaimed, even as Nigeria struggles with deepening educational challenges, including millions of out-of-school children and poorly resourced basic schools.
Justice Nwite also emphasised that neither the National Assembly nor state governments have the authority to enact laws placing local governments under state control in ways that violate their constitutional status. While states may legislate on local government administration, such laws must align strictly with constitutional provisions.
