Supreme Court Upholds Local Government Autonomy in Landmark Ruling

In a landmark judgment on Thursday, the Supreme Court of Nigeria declared it unconstitutional for state governors to withhold funds allocated for local government administrations. This decision represents a significant step toward ensuring the autonomy and financial independence of the country's 774 local government councils.

The Attorney General of the Federation (AGF), Lateef Fagbemi (SAN)

The Judgment

The seven-man panel, led by Justice Emmanuel Agim, ruled that local governments should manage their funds independently. The court emphasized the division of governmental powers into three distinct tiers: federal, state, and local government. It asserted that a state government has no authority to elect caretaker committees for local governments, and only democratically elected local councils are legitimate.

“A democratically elected local government is sacrosanct and non-negotiable,” Justice Agim stated. The court's ruling underscored the constitutional principle that democratically elected local governments must be allowed to function without interference from state governors.

The Case and Arguments

The case was initiated by the Attorney General of the Federation (AGF), Lateef Fagbemi (SAN), who filed a lawsuit on behalf of the Federal Government seeking to grant full autonomy and direct funding to all 774 local government councils. This move aimed to prevent state governors from mismanaging local government funds.

The 36 state governments, through their attorneys general, filed a counterclaim, arguing that the Supreme Court lacked the jurisdiction to hear the case. However, Justice Agim dismissed these objections, affirming the AGF's legal authority to initiate the lawsuit and uphold the constitution. “I hold that the plaintiff’s request is hereby approved and all the reliefs granted,” he declared.

Impact of the Ruling

The Supreme Court also barred governors from dissolving democratically elected local government councils, stating that such actions would breach the 1999 Constitution. Justice Agim highlighted that the refusal of financial autonomy for local governments has persisted for over two decades, with state governors acting in their stead and mismanaging funds meant for local administration.

He noted that local governments have since stopped receiving their allocated funds directly, leading to inefficiencies and corruption. The judgment mandates that local government allocations from the Federation Account should be paid directly to them, bypassing state government coffers. This directive aims to restore the operational effectiveness and financial independence of local councils.

Long Walk to Local Government Autonomy

There are 774 local government areas in Nigeria, but the efficiency of this third tier of government has been hampered by overbearing state governors who control and mismanage local government funds. In recent months, calls for local government autonomy have intensified, with President Bola Tinubu also expressing support for these calls.

Currently, the Federal Government receives 52.68% of the country’s monthly revenue, states get 26.72%, and local governments receive 20.60%. These funds are allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and disbursed by the Federation Account Allocation Committee (FAAC). However, local government funds are paid into a joint account operated by state governments and local governments, leading to issues of mismanagement.

Federal Government's Stand

In May, the Federal Government, through AGF Lateef Fagbemi, sued the 36 state governors over the alleged mismanagement of local government funds. The suit sought an order preventing governors from arbitrarily dissolving democratically elected councils. The AGF's suit was based on 27 grounds, highlighting various constitutional violations and the need for local government autonomy.

The 36 state governors opposed the suit, arguing that the AGF lacked the jurisdiction to file the case. However, the Supreme Court's ruling dismissed these objections and affirmed the AGF's right to protect the constitution.

The Verdict

In his judgment, Justice Agim underscored the importance of upholding constitutional provisions that guarantee the autonomy and financial independence of local governments. He directed that local government allocations from the Federation Account should be paid directly to the local councils, not to state government coffers. This measure is intended to prevent the misappropriation of funds and ensure that local governments have the resources needed to fulfill their responsibilities.

Justice Agim pointed out that the state governors' retention of funds meant for local governments has hindered their activities and compromised public services. He ordered immediate compliance with the judgment, stating that no state government should receive funds allocated to local governments.

Conclusion

The Supreme Court's ruling marks a significant victory for local government autonomy in Nigeria. By affirming the constitutional rights of local governments to manage their funds independently, the judgment aims to enhance the efficiency and accountability of local councils. It also seeks to curtail the overreach of state governors who have historically controlled and mismanaged local government funds.

This landmark decision is expected to pave the way for improved governance at the local level, empowering democratically elected councils to deliver better services to their communities. It underscores the importance of adhering to constitutional principles and the rule of law in ensuring the effective functioning of all tiers of government in Nigeria. #SupremeCourtruling #LateefFagbemi #774lgas #LocalGovernmentAutonmy #TrendingNews #Bulletin1247