Breaking News: Supreme Court affirms financial autonomy of Local Governments
The Supreme Court of Nigeria, in a landmark ruling on Thursday, declared that the constitution provides financial autonomy to local governments. This decision, read by Justice Emmanuel Agbim, emphasized the importance of respecting and upholding this provision.
The ruling came in response to a case brought by the federal government to enhance the independence of local governments in the country. The apex court highlighted that state governments have been misusing funds allocated for LGAs, and as of this Thursday, all 774 local governments nationwide should receive their allocations directly from the Federation Account.
The Supreme Court condemned the long-standing “dubious practice” as a violation of Section 162 of the 1999 Constitution, as amended. Justice Emmanuel Agim, in the lead judgement, asserted that no state House of Assembly has the authority to enact laws that would interfere with LGA funds.
Emphasizing the necessity of democratically elected officials governing LGAs, the Supreme Court mandated that funds designated for LGAs must be promptly disbursed to them from the federation account.
“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states. In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” The Supreme court ruled.
The Federal Government, represented by the Attorney General of the Federation, had previously filed a lawsuit against the 36 state governors. Simultaneously, the State Governments attempted to challenge and dismiss the lawsuit, a move that was turned down by the Supreme Court.
The future actions of the State Governments in adhering to the court’s decision are uncertain, considering their history of obstructing local governments, particularly in States where Local Council Development Areas have been established.
