In a landmark ruling set to redefine the administrative landscape of Nigeria, the Supreme Court has ordered that funds allocated to Local Government Areas (LGAs) must be paid directly from the Federation Account, bypassing state governments. This decision, delivered by Justice Emmanuel Agim on Thursday, underscores the constitutional mandate that funds meant for LGAs, managed by democratically elected officials, must not be withheld or misappropriated by state governments.
Justice Agim, in his pronouncement, emphasized the unconstitutionality of state governments’ practices of withholding and utilizing allocations meant for LGAs. He cited Section 162(3) of the Constitution, which clearly mandates the direct transfer of these funds to ensure decentralization and grassroots development. This judgment is poised to empower local governments, fostering greater autonomy and enhancing their ability to drive local development initiatives.
The ruling stems from a lawsuit filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), who has been a vocal advocate for local government autonomy. In June, the Supreme Court had reserved its judgment on this pivotal case, which saw all 36 state governors named as defendants.
Leading a seven-man panel, Justice Garba Lawal highlighted the significance of this case for Nigeria’s federal structure. The Federal Government’s suit calls for a prohibition on state governors’ arbitrary dissolution of democratically elected local governments and seeks to end the unconstitutional practice of maintaining joint accounts with LGAs.
Furthermore, the government seeks an injunction to prevent governors from forming caretaker committees to manage local governments, a move often seen as undermining the constitutionally protected democratic processes. The Federal Government also demands that governors, their agents, and associates be barred from tampering with funds allocated to LGAs from the Federation Account, especially in states lacking democratically elected local government systems.
The case underscores the Nigerian government’s commitment to upholding the Constitution and ensuring that local governments operate independently and effectively. By promoting full autonomy for LGAs, this ruling could catalyze a significant shift towards enhanced governance and development at the grassroots level.
In a previous directive, the Supreme Court had given the 36 state governors a seven-day window to file their defense, with the Attorney-General granted two days to respond. This expedited timeline reflects the urgency and importance of the matter at hand.
As Nigeria continues to navigate its federal structure, this ruling marks a crucial step towards strengthening local governance and ensuring that funds meant for local development are used as intended.
PIONEER NEWS 