The Supreme Court of Nigeria has ruled that from now on, the Federal Government must transfer funds directly to the Local Government Areas, which are managed by democratically elected officials.
The court emphasized that it is unconstitutional for State Governments to withhold or use funds intended for the LGAs and directed that the 774 local government councils should manage their funds independently.
In a lead judgment by Justice Emmanuel Agim, the apex court has also held that it is unconstitutional for State Governments to retain and use allocation meant for the LGAs on their behalf without transferring the same to them as provided in Section 162(3) of the Constitution.
The Supreme Court made these pronouncements in its ongoing judgment in the suit filed by the Attorney General of the Federation (AGF) seeking full autonomy for the LGAs.
This ruling is a significant step towards granting financial autonomy to the Local Governments, ensuring that they have control over their funds as mandated by the Constitution.
Ondo, Lagos, Taraba, and Imo State, have objected to the federal government’s involvement in the matter.
They argue that the federal government does not have the legal right to initiate this action and interfere in local government affairs.
Additionally, some states claim that they already have democratically elected local government officials in place and see the federal government’s lawsuit as an abuse of the judicial process.
Imo state has also stated that it plans to hold local government elections but has been delayed by the ongoing litigation.
