In a landmark ruling on Thursday, the Supreme Court declared that state governors’ control over local government funds is unconstitutional. The apex court’s lead judgment, read by Justice Emmanuel Agim, stated that the 774 local government councils should manage their finances independently.
The court observed that state governments’ refusal to grant financial autonomy to local governments has persisted for over two decades, denying them access to their allocated funds. Justice Agim emphasized that the Attorney-General of the Federation (AGF) has the right to institute the suit and protect the constitution.
The Supreme Court directed that local government allocations from the Federation Account should be paid directly to them henceforth, effectively granting financial autonomy to the local governments.
This ruling is a significant victory for the Federal Government, which had filed the suit through the AGF, Lateef Fagbemi, seeking to prevent state governors from arbitrarily dissolving democratically elected councils and to ensure the constitutionally guaranteed financial autonomy of local governments.
The judgment is a major breakthrough for local government administration in Nigeria, as it ensures that funds meant for local governments will no longer be withheld by state governors.