The Supreme Court ruled on Thursday that it is unconstitutional for state governors to withhold funds allocated to Local Government (LG) administrations.
The decision marks a significant shift in the governance of the nation’s 774 local government councils, granting them financial autonomy for the first time in over two decades.
The lead judgement, delivered by Justice Emmanuel Agim, addressed a longstanding issue where state governments have consistently denied local governments the financial independence necessary for their operations. Justice Agim highlighted that state governors have been withholding these funds for more than 20 years, a practice that has hindered local governance and development.
“The refusal of state governments to grant financial autonomy to local governments is unconstitutional,” stated Justice Agim. “Local governments must have control over their own financial management to effectively serve their communities.”
The court’s majority ruling dismissed the preliminary objections raised by the state governors, reaffirming the constitutional right of local governments to financial independence.
Justice Agim emphasized that local councils should receive funds directly from the Federation Account, ensuring they have the resources needed for local administration without interference from state authorities.
The case was brought before the Supreme Court by Lateef Fagbemi, the Attorney-General of the Federation (AGF), who sought an injunction to prevent state governors from arbitrarily dissolving democratically elected local councils. Justice Agim affirmed the AGF’s right to file the lawsuit and uphold the constitution.
“The Attorney-General of the Federation is entitled to defend the constitution and ensure that local governments operate with the autonomy granted to them by law,” Justice Agim declared.
As a result of this ruling, the Supreme Court ordered that all future disbursements to local governments be made directly from the Federation Account, bypassing state governors who previously controlled these funds.
This decision is expected to have far-reaching implications for local governance across the country, empowering local councils to make independent financial decisions and potentially leading to improved local infrastructure and services.
Local government officials and advocates for decentralized governance have welcomed the Supreme Court’s ruling, seeing it as a victory for democracy and a step toward more effective local administration.
