The Supreme Court has granted financial autonomy to all the Local Government Areas across the 36 states of the country.
The court therefore orders that funds meant for the local government councils be paid to them directly from the federation account and not through the state governors.
In a judgment delivered by a seven-member justice panel headed by Justice Lawal Garba, Nigeria’s apex court says the Constitution under Section 162 (4,5 and 6) doesn’t provide for the existence of a joint account for both the states and local government councils.
The lead judgment was prepared and read by Justice Emmanuel Agim.
The court holds that the provision of the constitution that funds meant for the local government councils be sent to the states is for them to act as agents of the federal government for the onward disbursement of same. It adds that the States are therefore not required to hold on to the money and use.
It holds that the states are exploiting the roles handed to them by the constitution by holding onto funds meant for local government councils. The court also laments this has been on for over two decades, crippling the effective functioning of the third tier of government.
The apex court therefore says the local government councils have the sole right to control their funds.
Recall that the supreme court was scheduled to deliver judgment on the suit seeking full autonomy for the 774 local governments in the country on July 11th.
The federal government instituted the suit marked SC/CV/343/2024 against all the 36 states of the federation.
In the suit filed by Lateef Fagbemi, attorney-general of the federation, the federal government is also asking for an order preventing the governors from arbitrarily dissolving democratically elected councils.
The suit is hinged on 27 grounds.
“That the constitution of Nigeria recognizes federal, states and local governments as three tiers of government and that the three recognized tiers of government draw funds for their operation and functioning from the federation account created by the constitution,” the originating summons reads.
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