The Supreme Court delivered a landmark judgment on Thursday, declaring that it is unconstitutional for state governors in Nigeria to withhold or manage funds allocated to local government councils. The seven-man panel, led by Justice Emmanuel Agim, emphasized the autonomy of local government administrations, stating that they should have full control over their finances.
In the judgment, the Supreme Court reiterated the division of governmental powers among federal, state, and local levels, stressing that local governments are an essential component of Nigeria’s democratic structure and must be led by democratically elected officials. The court explicitly condemned the practice of state governments appointing caretaker committees to oversee local governments, asserting that such actions undermine democratic principles and violate the 1999 Constitution.
Justice Agim emphasized that local government councils should receive and manage funds meant for their operations directly, either from the federation account or through state governments if necessary. However, given past abuses and failures in this regard, the court ruled that allocations should now be paid directly to local governments to ensure transparency and proper governance.
The judgment included several declarations and orders aimed at enforcing the autonomy of local governments:
- State governments are prohibited from withholding or controlling local government funds.
- Local government councils are entitled to receive their allocations directly.
- Any action contrary to these principles will be deemed as gross misconduct.
- The court issued an injunction restraining state governments from spending local government allocations.
The Attorney General of the Federation, Lateef Fagbemi (SAN), represented the Federal Government in the case, advocating for full autonomy and direct funding for all 774 local government councils across Nigeria. The lawsuit, which was supported by 27 grounds, argued against arbitrary dissolution of democratically elected local government officials and emphasized the federal government’s duty to uphold constitutional provisions.
The Supreme Court’s decision marks a significant victory for local governance in Nigeria, reinforcing the principle of democratic representation and financial autonomy at the grassroots level. It underscores the importance of constitutional adherence and equitable distribution of resources in fostering effective governance and development across the country.
