The Supreme Court has ruled that the federal government should henceforth pay allocations directly to local government councils from the federation account.
The Supreme Court barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 Local Government Areas, LGAs, in the country
In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.
There have been calls from different quarters against the state governors holding monies meant for LGAs. Infact, in May this year, the federal government through the Attorney General of the Federation filled a suit at the Supreme Court against governors of the 36 states where the AGF asked for full autonomy for the country’s 774 local governments.
Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades.
According to him, local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
While noting that the 774 local government councils in the country should manage their funds themselves, he dismissed the preliminary objections of the defendants (state governors).
Justice Agim said the AGF has the right to institute the suit and protect the constitution.
The Supreme Court also barred governors from dissolving democratically elected Local Government councils in the country.
It further declared unconstitutional the appointment of caretaker committees by governors to run the affairs of the LGAs.
It held that the 36 states are under obligation to ensure democratic governance at the third tier of government.
