Supreme Court Bars Governors From Holding LG Funds

The Supreme Court has delivered judgment in the suit instituted by the Federal Government against the 36 state governors on local government autonomy.

In the suit, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), sought full autonomy and direct fund allocation to the 774 local governments in the country.

In the suit predicted on 27 grounds, the Federal Government accused the state governors of gross misconduct and abuse of power.

The Federal Government prayed the Supreme Court to make an order expressly stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.

The government also prayed for “an order of injunction restraining the governors, their agents and privies from receiving, spending or tampering with funds released from the Federation Account for the benefits of local governments when no democratically elected local government system is put in place in the states.”

In its lead judgement read by Justice Emmanuel Agim, the apex court declared that it is unconstitutional for governors to hold on to funds meant for Local Government (LG) administrations.

Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades.

According to him, local governments have since stopped receiving the money meant for them from the state governors who act in their stead.

While noting that the 774 local government councils in the country should manage their funds themselves, he dismissed the preliminary objections of the defendants (state governors).

Justice Agim said the AGF has the right to institute the suit and protect the constitution.

Consequently, the apex court directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.