The Supreme Court made a groundbreaking ruling declaring it unconstitutional for state governors to withhold funds meant for local government (LG) administrations. Justice Emmanuel Agim emphasized that denying financial autonomy to LGAs has been ongoing for over two decades. The court criticized the use of state joint accounts, stating that governors exploited this system for their benefit. The suit filed by the Attorney General of the Federation sought full autonomy for all LGAs as the third tier of government.
The Supreme Court’s decision mandates the Federation Account to directly allocate all funds to local governments to ensure their financial independence. The court prohibited further allocation of funds to councils without elected officials, aiming to prevent misappropriation by state governments. The apex court ruled that governors cannot dissolve democratically elected LG officials as it violates the constitution.
The judgement aims to empower the 774 local government councils in Nigeria to manage their funds independently, bypassing state governors. The Supreme Court, led by Justice Garba Lawal, reserved its decision since the last proceedings in June. The ruling serves as a significant step towards strengthening democracy and ensuring proper utilization of LG funds.