Supreme Court Orders Direct Funding for Local Governments

Supreme Court Orders Direct Funding for Local Governments: The Supreme Court of Nigeria has delivered a landmark judgment, prohibiting the 36 state governors from further withholding or utilizing funds allocated to the

774 Local Government Areas (LGAs). The apex court deemed it illegal

and unconstitutional for governors to continue receiving and seizing funds

meant for LGAs in their states, a practice that has persisted for over two decades.

According to the court, this practice violates Section 162 of the 1999 Constitution,

as amended. In its lead judgment, Justice Emmanuel Agim emphasized that no state House of Assembly has the power to enact laws that interfere with funds meant for LGAs. The court stressed that LGAs must be governed by democratically elected officials, as mandated by law.

the supreme court

Consequently, the Supreme Court ordered that funds meant for LGAs must be directly paid to them from the federation account, effective immediately. The court held that the demands of justice require a progressive interpretation of the law, and that the federation can pay LGA allocations directly to the LGAs or through the states. However, since paying through states has not been effective, the court ruled that justice demands direct payment to LGAs.

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Furthermore, the court declared the appointment of caretaker committees by governors to run LGA affairs unconstitutional. It emphasized that the 36 states must ensure democratic governance at the third tier of government. This judgment follows a suit filed by the Federal Government to secure financial autonomy for LGAs. The court had earlier dismissed preliminary objections filed by state governors challenging the suit’s competence. This landmark judgment is expected to have significant implications for local government administration and financial autonomy in Nigeria.

©Udeh Chinenye