The Supreme Court today granted financial autonomy to the 774 local government areas in the country following a suit filed by the Federal Government against the 36 state governors regarding local government autonomy.
The Court declared that it is unconstitutional for state governors to hold funds allocated to Local Government administrations.
In its lead judgement read by Justice Emmanuel Agim, the apex court said the 774 local government councils in the country should manage their funds themselves.
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), filed the suit, seeking full autonomy and direct fund allocation to the 774 local governments in Nigeria.
The suit requests the court to order the withholding of funds from local governments run by caretaker committees appointed by governors, rather than elected chairmen and councillors.
The 36 state governors, represented by their attorneys-general, opposed the suit, arguing that the Supreme Court lacks jurisdiction to entertain it.
Fagbemi, representing the Federal Government in the suit marked SC/CV/343/2024, urged the court to grant all the reliefs sought, emphasizing the need for local governments to have full autonomy as the third tier of government, as stipulated in the 1999 Constitution.
He also called for direct allocation of funds from the federation account to the local governments and an order prohibiting the unlawful dissolution of local government administrations by state governors.
The suit is based on 27 grounds, highlighting the constitutional recognition of federal, state, and local governments as three tiers of government, all of which draw funds from the federation account. It argues that the constitution mandates a democratically elected local government system, and the governors’ failure to implement this system constitutes a deliberate subversion of the 1999 Constitution.
A seven-man panel of Supreme Court Justices, led by Justice Garba Lawal, heard the case on June 13 and reserved judgment.
