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Education
Federal high court empowers LG with direct access to UBEC funds, striking blow to state govts
Written By: Alaba Lambert
30 Dec 2025 11:55 AM
In a landmark decision reinforcing the autonomy of Nigeria's local governments, a Federal High Court in Abuja has ruled that local government areas (LGAs) can now access funds directly from the Universal Basic Education Commission (UBEC), bypassing interference from State Universal Basic Education Boards (SUBEBs).
The ruling, delivered by Justice Emeka Nwite on October 13, 2025, declares key sections of the Universal Basic Education (UBE) Act of 2004 unconstitutional, marking a significant step toward fiscal federalism and potentially reducing the number of out-of-school children across the country.
The case, filed in 2020 by plaintiff Sesugh Akume against UBEC and the Attorney-General of the Federation (AGF), challenged provisions in the UBE Act that required local governments to route counterpart funding through state governments via SUBEBs.
Justice Nwite ruled that Sections 11(2), 11(3), and 13(1) of the Act are inconsistent with Sections 7(1) and (5), 318, and Item 2(a) of the Fourth Schedule to the 1999 Constitution (as amended).
These sections were deemed null and void, as they undermined the constitutional status of local governments as an independent third tier of government, not merely an extension of state administrations.
In his judgment, Nwite emphasized: “The local government system is the third and autonomous tier of government designated by the constitution and administered by laws enacted by the house of assembly, in accordance with the constitution, and not an appendage and/or extension of the state government.”
He further ordered UBEC to notify all 37 SUBEBs and 774 Local Government Education Authorities (LGEAs) of the decision within three months, ensuring that LGAs can now pay counterpart funds individually and receive allocations directly without state hindrance.
The UBE Act, enacted in 2004, aimed to provide free and compulsory basic education for Nigerian children, funded through a mix of federal allocations and state/local counterpart contributions.
However, critics argued that mandating funds to flow through SUBEBs allowed states to exert undue control, often delaying or misallocating resources intended for primary and junior secondary education.
This setup was seen as violating the Constitution's provisions for local government autonomy, particularly in managing basic education as outlined in the Fourth Schedule.
The ruling aligns with broader pushes for local government reform in Nigeria, including recent Supreme Court decisions on financial independence. It comes amid ongoing national debates on restructuring, where advocates argue that empowering LGAs could improve grassroots development and address educational disparities, especially in rural areas plagued by high dropout rates.
Experts view this as a game-changer for Nigeria's education sector, where over 10 million children remain out of school, according to recent estimates.
By enabling direct access, LGAs can now more efficiently deploy funds for school infrastructure, teacher training, and enrollment drives without bureaucratic bottlenecks from states.
Politically, it strengthens the case for true federalism, potentially reducing corruption at the state level and holding local leaders more accountable.
However, challenges remain. Local governments must still meet statutory requirements to qualify for funds, and there are calls for robust auditing to prevent misuse.
Some observers warn that without complementary reforms, such as constitutional amendments for full financial independence, the impact could be limited.
Political figures, including those affiliated with the ruling All Progressives Congress (APC), shared the news positively, aligning it with President Bola Tinubu's administration's push for local empowerment.
While no official statements from state governors or SUBEBs were immediately available, the ruling could prompt appeals or legislative responses.
As Nigeria grapples with educational inequities, this development positions local governments at the forefront of change, potentially transforming basic education delivery nationwide.
The ruling, delivered by Justice Emeka Nwite on October 13, 2025, declares key sections of the Universal Basic Education (UBE) Act of 2004 unconstitutional, marking a significant step toward fiscal federalism and potentially reducing the number of out-of-school children across the country.
The case, filed in 2020 by plaintiff Sesugh Akume against UBEC and the Attorney-General of the Federation (AGF), challenged provisions in the UBE Act that required local governments to route counterpart funding through state governments via SUBEBs.
Justice Nwite ruled that Sections 11(2), 11(3), and 13(1) of the Act are inconsistent with Sections 7(1) and (5), 318, and Item 2(a) of the Fourth Schedule to the 1999 Constitution (as amended).
These sections were deemed null and void, as they undermined the constitutional status of local governments as an independent third tier of government, not merely an extension of state administrations.
In his judgment, Nwite emphasized: “The local government system is the third and autonomous tier of government designated by the constitution and administered by laws enacted by the house of assembly, in accordance with the constitution, and not an appendage and/or extension of the state government.”
He further ordered UBEC to notify all 37 SUBEBs and 774 Local Government Education Authorities (LGEAs) of the decision within three months, ensuring that LGAs can now pay counterpart funds individually and receive allocations directly without state hindrance.
The UBE Act, enacted in 2004, aimed to provide free and compulsory basic education for Nigerian children, funded through a mix of federal allocations and state/local counterpart contributions.
However, critics argued that mandating funds to flow through SUBEBs allowed states to exert undue control, often delaying or misallocating resources intended for primary and junior secondary education.
This setup was seen as violating the Constitution's provisions for local government autonomy, particularly in managing basic education as outlined in the Fourth Schedule.
The ruling aligns with broader pushes for local government reform in Nigeria, including recent Supreme Court decisions on financial independence. It comes amid ongoing national debates on restructuring, where advocates argue that empowering LGAs could improve grassroots development and address educational disparities, especially in rural areas plagued by high dropout rates.
Experts view this as a game-changer for Nigeria's education sector, where over 10 million children remain out of school, according to recent estimates.
By enabling direct access, LGAs can now more efficiently deploy funds for school infrastructure, teacher training, and enrollment drives without bureaucratic bottlenecks from states.
Politically, it strengthens the case for true federalism, potentially reducing corruption at the state level and holding local leaders more accountable.
However, challenges remain. Local governments must still meet statutory requirements to qualify for funds, and there are calls for robust auditing to prevent misuse.
Some observers warn that without complementary reforms, such as constitutional amendments for full financial independence, the impact could be limited.
Political figures, including those affiliated with the ruling All Progressives Congress (APC), shared the news positively, aligning it with President Bola Tinubu's administration's push for local empowerment.
While no official statements from state governors or SUBEBs were immediately available, the ruling could prompt appeals or legislative responses.
As Nigeria grapples with educational inequities, this development positions local governments at the forefront of change, potentially transforming basic education delivery nationwide.
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