The Supreme Court of Nigeria declared on Thursday that it is unconstitutional for state governors to withhold funds intended for Local Government (LG) administrations. The court also prohibited governors from dissolving democratically elected Local Government councils, citing that such actions breach the 1999 Constitution.
Justice Emmanuel Agim, delivering the lead judgement, emphasized that state governments’ refusal to grant financial autonomy to local governments has persisted for over two decades. He noted that the 774 local government councils in the country should independently manage their funds. He further stated that only democratically elected local government administrations, not caretaker committees, are entitled to these funds.
Justice Agim dismissed the preliminary objections of the state governors, affirming the right of the Attorney-General of the Federation (AGF) to protect the constitution by instituting the suit. The apex court directed that local government allocations from the Federation Account should be paid directly to the local governments, bypassing state government control.
This ruling addresses the longstanding issue of financial and operational autonomy for local governments, which has been hampered by the practices of some state governors. The verdict aligns with recent calls for local government autonomy and President Bola Tinubu’s support for these calls. The Federal Government, through AGF Lateef Fagbemi, had sued the 36 state governors over the alleged mismanagement of local government funds, seeking to prevent arbitrary dissolution of elected councils.
Justice Agim’s ruling mandates immediate compliance, ensuring that no state government retains funds meant for local governments, thereby enhancing the efficiency and autonomy of the third tier of government in Nigeria.