In a landmark judgement on Thursday, the Supreme Court declared as unconstitutional for state governors to withhold funds meant for local government (LG) administrations.
Justice Emmanuel Agim, delivering the lead judgement,noted that the denial of financial autonomy to local governments has persisted for over two decades.
This judgement followed a suit marked (SC/CV/343/2024) which was filed by the Attorney General of the Federation ( AGF) and Minister of Justice, Prince Lateef Fagbemi, SAN, which sought full autonomy for all LGAs in Nigeria as the third tier of government.
The Supreme Court criticised the use of state joint accounts, stating that governors had exploited this system to their advantage.
The court held that local governments should manage their funds independently and prohibited any further allocation of funds to councils without elected officials.
Justice Agim emphasised that the 774 local government councils in the country must receive their funds directly, bypassing state governors.
The apex court said the decision aims to ensure that LG funds are not misappropriated by state governments.
Three states, Delta, Ogun and Osun, were absent during the judgement and did not provide legal representation or notification to the court. However, the remaining states were represented by their respective Attorneys General.
Recalled the seven-man panel, led by Justice Garba Lawal, had reserved its judgement since the last proceedings on June 13.
However, delivering its final decision, the Supreme Court mandated the Federation Account to directly allocate all funds to local governments, ensuring their financial independence.
The apex court held that governors cannot dissolve democratically elected LG officials, as such actions breaches the 1999 Constitution.
The Supreme Court while delivering its judgement held that the state governors have constituted themselves as dangerous species to the development of democracy
