THE Supreme Court has upheld the financial independence of the 774 local government councils across the nation.
In a groundbreaking ruling issued today, the highest court mandated the Federal Government to promptly initiate the direct transfer of local government funds to the councils’ dedicated accounts.
In the leading judgement delivered by Justice Emmanuel Agim, the Supreme Court criticized the prolonged resistance of state governments towards granting financial autonomy to local governments.
Justice Agim emphasized that the 774 local government councils in the country should have control over their finances, managing them independently.
The objections raised by the defendants (state governors) were dismissed by the apex court.
The Supreme Court instructed that the allocations meant for local governments from the Federation Account should now be transferred directly to them, bypassing state government control.
Justice Agim highlighted that the act of state governors withholding funds designated for local governments hinders the operations of the latter.
He mandated immediate compliance with the judgement, stressing that no state government should receive funds intended for the local governments.
This development marks a milestone in achieving local government autonomy after years of challenges caused by some governors exerting excessive authority and mismanaging funds allocated for local governance.
Calls for local government autonomy have been on the rise in Nigeria, with even President Bola Tinubu endorsing the movement.
In May, the Federal Government, represented by the Attorney-General of the Federation (AGF), Lateef Fagbemi, took legal action against the 36 state governors over alleged financial misconduct involving local government funds.
Currently, the revenue distribution stands at 52.68% for the Federal Government, 26.72% for states, and 20.60% for local governments, as determined by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) operating under the Presidency and disbursed through the Federation Account Allocation Committee (FAAC).
Interestingly, local government funds are currently deposited into a shared account managed jointly by state governments and local governments within their respective jurisdictions.
In the suit filed by AGF, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils.
The suit by the AGF was on 27 grounds.
The 36 state governors, defendants in the suit, opposed the AGF for instituting the case.
However, Justice Agim affirmed the AGF’s authority to file the lawsuit and uphold the constitution.
