In a landmark ruling today, the Supreme Court has ended the long-standing practice of governors retaining and utilizing funds meant for Local Government Areas (LGAs) across Nigeria. The apex court declared this practice illegal and unconstitutional, citing a violation of Section 162 of the 1999 Constitution.
Justice Emmanuel Agim delivered the lead judgement, stating that no state House of Assembly has the authority to pass laws that interfere with the allocation of funds to LGAs. Emphasizing the importance of democratic governance at the local level, the Supreme Court ordered that funds intended for the LGAs must be paid directly to them from the federation account.
The court also declared the appointment of caretaker committees by governors to run LGA affairs as unconstitutional. It underscored the states’ responsibility to ensure democratic governance at this level.
This ruling resulted from a lawsuit filed by the Federal Government seeking financial autonomy for the LGAs. The Supreme Court dismissed preliminary objections raised by state governors challenging the lawsuit’s competence.
With this decision, the Supreme Court has taken a significant step towards enhancing transparency and accountability in local governance. The direct payment of funds to the LGAs will ensure they have the necessary resources to effectively address their constituents’ needs.
This ruling is a victory for democracy and the proper allocation of resources. It marks a turning point in the relationship between state governments and LGAs, reinforcing the importance of LGA autonomy and ensuring governance by democratically elected officials.
The impact of this decision will be felt nationwide, setting a precedent for the equitable distribution of funds and promoting grassroots development. Moving forward, it is expected that states will comply with this ruling and work towards strengthening local governance in line with the constitution.
