BREAKING NEWS: Court Breaks States’ Grip on Education Funds: LGs Win Direct Access to UBEC Grants
In a sweeping and historic ruling that could radically transform basic education funding in Nigeria, the Federal High Court in Abuja has declared local governments a fully autonomous third tier of government and struck down key sections of the Universal Basic Education (UBE) Act that placed them under state control.
The judgment effectively dismantles the long-standing dominance of state governments over basic education funds and hands direct financial power to local governments for the first time.
Court Affirms Local Government Autonomy
Delivering judgment on October 13, 2025, Justice Emeka Nwite ruled that local governments are not appendages of state governments but constitutionally recognised entities with independent authority under the 1999 Constitution.
The court held that any law or policy subjecting local governments or their agencies to state supervision violates constitutional provisions guaranteeing local government autonomy.
UBE Act Provisions Declared Unconstitutional
The court nullified Sections 11(3) and 13(1) of the UBE Act, 2004, which mandated that federal education funds be administered through State Universal Basic Education Boards.
Justice Nwite ruled that the National Assembly exceeded its powers by enacting provisions that subordinated Local Government Education Authorities to state-controlled SUBEBs.
LGEAs Can Now Access UBEC Funds Directly
In a major shift with immediate implications, the court ordered that Local Government Education Authorities (LGEAs) are now legally entitled to apply for and receive federal education grants directly from the Universal Basic Education Commission, without going through state governments or SUBEBs.
The court stressed that local governments “shall, not may” access the funds directly once they pay their statutory counterpart contributions.
UBEC and AGF Ordered to Notify All States and LGs
The court further ordered UBEC and the Attorney-General of the Federation to formally notify all 37 State Universal Basic Education Boards (SUBEBs) and 774 LGEAs nationwide of the ruling within three months.
The deadline for full compliance is 14 January 2026.
Case That Triggered the Earthquake
The suit, marked FHC/ABJ/CS/1536/2020, was filed by Sesugh Akume, who challenged the constitutionality of routing UBE funds through states and the supervision of LGEAs by SUBEBs.
The court agreed, describing the arrangement as a violation of Sections 7(1), 7(5), and Item 2(a) of the Fourth Schedule of the Constitution.
Billions in Education Funds Previously Trapped
The ruling comes against the backdrop of UBEC’s own admission that hundreds of billions of naira in UBE funds remain unclaimed, largely due to state-level bottlenecks and failure to apply for grants.
Nigeria currently has an estimated 18 million out-of-school children, while many public schools operate with dilapidated classrooms, unpaid teachers, and extreme shortages of learning materials.
End of SUBEB Monopoly
By stripping SUBEBs of exclusive control over UBE funds, the judgment effectively ends decades of centralised fund management at state level—an arrangement widely blamed for stalled projects, fund diversion, and poor service delivery at the grassroots.
Education advocates say the ruling could finally unlock funding for rural schools that have been starved of resources for years.
A Constitutional Earthquake with National Impact
Legal experts describe the decision as one of the most consequential rulings on local government autonomy since Nigeria’s return to democracy. Beyond education, the judgment is expected to reignite debates on fiscal federalism, grassroots governance, and state control over local councils.
Whether states comply willingly or push back politically may determine how quickly Nigerian classrooms feel the impact.
