The Supreme Court of Nigeria has granted financial autonomy to the 774 local government councils in Nigeria and barred state governors from dissolving democratically elected councils.
The apex court, in a ruling delivered on Thursday, July 11, 2024 stated that dissolving local government councils would violate the 1999 Constitution. The judgment was a result of a suit filed by the Attorney General of the Federation (AGF), seeking an order to prevent governors from arbitrarily dissolving democratically elected councils. The suit was based on 27 grounds.
The Supreme Court criticized the state governors for opposing the AGF’s suit, stating that they had wasted their time. Justice Emmanuel Agim, who delivered the lead judgment, emphasized that local government councils should manage their funds independently. He stated, “The 774 local government councils in the country should manage their funds themselves.”
Justice Agim dismissed the preliminary objections raised by the state governors and directed that local government allocations from the Federation Account be paid directly to the councils, bypassing the state government coffers. He noted that only democratically elected local government administrations are entitled to these funds and not caretaker committees.
The court’s decision aims to address the long-standing issue of financial autonomy for local governments, which has been hampered by state governors’ control over local government funds. Justice Agim pointed out that the governors’ retention of funds meant for local governments has hindered their activities, stating that this practice must cease immediately.
The judgment also highlighted the significant calls for local government autonomy in recent months, supported by President Bola Tinubu. The Federal Government, through the AGF, had sued the 36 state governors over alleged misconduct of local government funds. Currently, the Federal Government receives 52.68% of the country’s monthly revenue, states receive 26.72%, and local governments receive 20.60%. These funds are disbursed by the Federation Account Allocation Committee (FAAC) and were previously paid into a joint account operated by state and local governments.
In his ruling, Justice Agim affirmed the AGF’s right to institute the suit to protect the constitution. He ordered immediate compliance with the judgment, stating that no state government should be paid monies meant for Local Governments.
