The Supreme Court of Nigeria has ruled that state governors’ withholding of funds allocated for Local Government administrations is unconstitutional.
This landmark decision reinforces the constitutional mandate that Local Governments should manage their own finances independently.
According to Channels TV, the lead judgment was delivered by Justice Emmanuel Agim, who emphasized that the Constitution envisions a system where Local Governments operate autonomously from the state governments. “Local governments should manage their funds themselves,” Justice Agim stated, highlighting the importance of financial independence for these local entities.
The court’s ruling comes in response to a suit filed by the Attorney-General of the Federation, Lateef Fagbemi, challenging the practice of state governors withholding funds meant for Local Governments. The AGF’s suit sought to prevent governors from arbitrarily dissolving democratically elected councils and was based on 27 grounds. Justice Agim affirmed that the AGF had the right to initiate the suit to uphold the Constitution and protect democratic governance.
The Supreme Court dismissed the preliminary objections raised by the state governors, who had contested the legal standing of the suit. The governors had argued against the suit, claiming that the AGF did not have the authority to challenge their actions in withholding Local Government funds. However, the court ruled against these objections, stating that the AGF’s actions were within constitutional bounds.
The court’s decision mandates that henceforth, allocations from the Federation Account to Local Governments must be paid directly to them, bypassing the state governments. Justice Agim affirmed that the direct payment mechanism is crucial for ensuring that Local Governments receive and manage their funds independently.
This ruling is a significant victory for the principle of federalism in Nigeria and aims to enhance the effectiveness of Local Government administrations by ensuring they have direct access to their financial resources.
