BREAKING NEWS: Supreme Court grants financial autonomy to Local Governments

The 36 federation governors are no longer permitted by the Supreme Court to keep or use cash intended for the 774 Local Government Areas, or LGAs, around the nation.

The supreme court declared that governors’ continued receipt and seizure of monies designated for local government units (LGAs) in their states is unlawful and unconstitutional.

It said that Section 162 of the 1999 Constitution, as amended, was clearly violated by the “dubious practice,” which has persisted for more than 20 years.

The supreme court ruled in Justice Emmanuel Agim’s lead opinion that no state’s House of Assembly has the authority to enact legislation that would in any way tamper with funds intended for the local government areas.

Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.

“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.

“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” the apex court held.

It further declared unconstitutional the appointment of caretaker committees by governors to run the affairs of the LGAs.

It held that the 36 states are under obligation to ensure democratic governance at the third tier of government.

The judgement followed a suit the Federal Government filed to secure financial autonomy for the LGAs.

Earlier, the court dismissed preliminary objections the state governors filed to challenge the competence of the suit.