By Agency Report
The Supreme Court has upset the state governments’ apple cart, declaring that it is unconstitutional for state governors to hold onto funds meant for Local Government administration in the country.
In a lead judgement, Justice Emmanuel Agim held that refusal of the state government on financial autonomy for local government councils has gone on for over two decades.
The apex court observed that local governments have since stopped receiving the money meant for them from the state governors who act in their stead. Justice Agim noted that the 774 local government councils in the country should manage their funds themselves.
Also read: How Nigerian Governors Fleece Local Government Councils’ Funds Despite NFIU Law
Agim dismissed the preliminary objections of the defendants (36 state governors).
In the suit filed by the Attorney-General of the Federation (AGF), Lateef Fagbemi, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils.
Justice Agim said the AGF has the right to institute the suit and protect the constitution.
The apex court consequently directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.
Also read: Nigerian Governors lose case over financial autonomy for Local Govts
Recall that on May 22, 2022, the Federal Government and the Nigerian Financial Intelligence Unit (NFIU) won the case against the state governors over the financial autonomy from the Local Government joint account.
The Genesis
There are 774 local government areas in the country but the efficiency of the third tier of government has been hampered by the weight of some controlling and overbearing governors who have been accused of mismanaging funds meant for the administration of local governments.
In May 2024, the Federal Government, through the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds.
The AGF, in the suit marked SC/CV/343/2024, prayed the apex Court for an order prohibiting state governors from unilaterally, arbitrarily, and unlawfully dissolving democratically elected local government leaders.
At present, the Federal Government gets 52.68%, and states get 26.72%. In comparison, LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).
Interestingly, LG funds are paid into a joint account operated by state governments and local governments in their domains.
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, who are defendants in the suit, opposed the AGF for instituting the case.
Supreme Court bars Govs from sacking chairmen
The Supreme Court of Nigeria had nullified the power of state governors to sack elected local government chairmen.
The apex court also stopped the state Houses of Assembly from empowering the governor to replace the sacked chairmen with interim administrators.
The Supreme Court had, in a unanimous judgement, barred state governors from sacking elected local government chairmen and councilors henceforth.
Other areas of the ruling that took place on 11th December, 2019 includes:
1. No state Governor will henceforth have the power to sack duly elected local government chairmen and the appointment of caretaker chairmen is also barred.
2. The act giving legislative powers to state Assembly members to undergo a process by sacking elected local government chairmen is null and void.
3. That a copy of the judgement should be served to all 36 state Houses of Assembly and the Minister of FCT on or before the 30th December, 2019.
This judgement was sequel to an appeal filed by the 16 Ekiti state LGA chairmen who were elected during Governor Fayose Ayodele and were sacked by the incumbent governor, Kayode Fayemi of Ekiti state.
In a five-man panel headed by Justice Olubolade Joe, the Supreme Court had buried the powers of state Assemblies and governors from sacking duly elected local government chairmen.
