
Supreme Court Orders Full Financial Autonomy for Local Governments
The Supreme Court of Nigeria has mandated that all state governors must cease controlling the funds allocated to the 774 local government areas in the country. In a landmark ruling, the court declared that the state management of these funds is unconstitutional, thereby granting full financial autonomy to local governments.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, filed the suit seeking direct allocation of funds to the local governments and full autonomy. Fagbemi invoked sections 1, 4, 5, 7, and 14 of the constitution, arguing that state governors and houses of assembly are obligated to ensure democratically elected systems at the local government level.
Justice Emmanuel Agim, delivering the lead judgment, emphasized that state governors cannot withhold funds meant for local government administrations. He highlighted that this unconstitutional control has persisted for over two decades, depriving local governments of their rightful funds.
Justice Agim dismissed the preliminary objections raised by the defendants (state governors) and affirmed the right of the Attorney General to protect the constitution through this suit. He ruled that henceforth, local government allocations from the Federation Account must be paid directly to the local councils.
This decision marks a significant step towards strengthening local governance and ensuring that local governments manage their resources independently, promoting transparency and accountability at the grassroots level.
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