Stop giving funds to LGs without elected officials, Supreme Court rules

…grants LG full autonomy

The Supreme Court of Nigeria, in a landmark ruling on Thursday, has declared unconstitutional the practice by state governors to withhold funds intended for local government administrations, asserting that such actions violate the autonomy guaranteed to local governments by the constitution.

Justice Emmanuel Agim, delivering the lead judgement in the case marked (SC/CV/343/2024), filed by the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, said the persistent denial of financial autonomy to local governments over the past two decades.

The court criticized the utilization of state joint accounts by governors, which it argued had been exploited to the advantage of state governments.

The Supreme Court’s decision mandates that local governments manage their finances independently, emphasizing that funds must be allocated directly to the 774 local government councils in Nigeria, bypassing state governors.

This directive aims to safeguard against misappropriation of local government funds by state authorities.

Justice Agim further emphasized that the Supreme Court’s ruling prohibits any future allocation of funds to councils without democratically elected officials, reinforcing the constitutional rights of local governments as the third tier of government in Nigeria.

During the proceedings, three states—Delta, Ogun, and Osun—were notably absent and did not provide legal representation or notification to the court, though the remaining states were represented by their respective Attorneys General.

The seven-man panel, led by Justice Garba Lawal, had reserved its judgement since the last proceedings on June 13.

In delivering the final decision, the Supreme Court directed the Federation Account to ensure direct allocation of funds to local governments, thereby securing their financial independence and upholding democratic governance as enshrined in the 1999 Constitution.