BACKGROUND
The call for local government autonomy has been a prominent topic in Nigerian political discussions for several decades, with many attributing the inefficiency of local governments to their limited financial independence. In response to this issue, the Federal Government in an unprecedented move took legal action against the 36 state governments in the country. The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), filed a lawsuit advocating for complete autonomy and direct allocation of funds to the 774 local governments in Nigeria.
SUPREME COURT RULING
- The Supreme Court ruled on Thursday 11th July 2024 that all federal funds for local government councils should be paid directly into their accounts.
- Justice Emmanuel Agim, who led a seven-member panel of justices, delivered the judgment in a suit filed by the federal government against the 36 state governors.
- According to the judgment, no more payments of local government area allocations will be made to state government accounts. The court also prohibited the governors from receiving, tampering with, or withholding funds meant for local governments.
- Furthermore, the court barred the governors from dissolving democratically elected officials for local governments and deemed such actions a breach of the 1999 Constitution.
- The federal government had approached the Supreme Court with a suit seeking to compel the governors of the 36 federating states to grant full autonomy to local governments in their domains. The suit, marked SC/CV/343/2024, was filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), on behalf of the Federal Government.
- The Federal Government accused the state governors of gross misconduct and abuse of power in its suit, which was based on 27 grounds. In the originating summons, the FG prayed the Supreme Court to make an order stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.
- The justice minister also requested an order restraining governors, their agents, and privies from receiving, spending, or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected local government system is in place in the states.
- Finally, the Federal Government sought an order stopping governors from constituting caretaker committees to run the affairs of local governments, contrary to the constitutionally recognized and guaranteed democratic system.
As expected many Nigerians have been reacting positively to the news since the Supreme Court made the announcement. Former Kaduna lawmaker, Senator Shehu Sani, has said the Supreme Court has freed the local governments from over two decades of captivity and systemic plunder by the states. Sani’s statement followed the Supreme Court judgment on Thursday, granting autonomy to the local governments in the country.
The court in a landmark ruling ordered all state governors to subsequently steer clear of the funds meant for the 774 local government areas of the country.