The Supreme Court has stopped the 36 state governors from using funds meant for the 774 Local Government Areas in Nigeria.
The court ruled that it is illegal and unconstitutional for governors to take funds allocated to LGAs. This practice has been happening for over 20 years and violates Section 162 of the 1999 Constitution, as amended.
Justice Emmanuel Agim, delivering the lead judgment, said no state House of Assembly has the power to make laws that interfere with LGA funds.
“The law mandates that LGAs must be governed by democratically elected officials. Funds meant for the LGAs must be directly paid to them from the federation account,” Justice Agim stated.
The Supreme Court emphasized, “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. 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 court also declared it unconstitutional for governors to appoint caretaker committees to run LGAs. The 36 states are now required to ensure democratic governance at the local government level.
This ruling followed a suit filed by the Federal Government to secure financial autonomy for the LGAs. The court also dismissed objections filed by state governors challenging the suit’s competence.
