The Supreme Court has ruled that the 36 state governors of Nigeria can no longer retain or utilize funds designated for the 774 Local Government Areas (LGAs) in the country. This landmark decision, which addresses a longstanding issue, was delivered by Justice Emmanuel Agim.
The court declared it illegal and unconstitutional for governors to intercept and manage funds allocated to LGAs, a practice that has persisted for over two decades. This ruling is based on the violation of Section 162 of the 1999 Constitution, as amended.
In the lead judgment, Justice Agim emphasized that no state House of Assembly has the authority to enact laws that interfere with funds meant for LGAs. He stressed the constitutional mandate that LGAs must be administered by democratically elected officials. Consequently, the Supreme Court ordered that all funds allocated to LGAs from the federation account must be paid directly to them.
“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations directly or through the states. Since paying through states has not worked, justice demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” Justice Agim stated.
Additionally, the Supreme Court declared the appointment of caretaker committees by governors to manage LGA affairs as unconstitutional. It asserted that all 36 states must ensure democratic governance at the local government level.
This judgment follows a suit filed by the Federal Government seeking financial autonomy for LGAs. Earlier, the court dismissed preliminary objections raised by state governors challenging the competence of the suit.
This ruling is seen as a significant step towards ensuring financial independence and democratic governance at the local government level across Nigeria.
