In a landmark ruling delivered on Thursday, the Supreme Court stated unequivocally that state governors who withhold funds allocated for local government administrations are acting in contravention of the constitution.
The judgment delivered by Justice Emmanuel Agim on behalf of the seven-member panel, affirmed that local government councils throughout Nigeria must have complete control over their financial resources. The ruling emphasized the need for the 774 local governments to have autonomy over their own finances, rather than being reliant on state governors for disbursement of funds.
The apex Court underscored the fundamental principle of separation of powers in Nigeria’s system of governance. The court emphasized that the federal government, state governments, and local governments are coequal branches of government, each with distinct responsibilities and obligations.
In addition, the Court unequivocally declared that state governments have no authority to appoint caretaker committees to oversee local government councils. The court emphasized that only democratically elected local government officials are entitled to govern and manage the affairs of their respective areas.
The court noted “A democratically elected local government is sacrosanct and non-negotiable.”
The Supreme Court’s ruling stated that the use of a caretaker committee by a state government to manage local government affairs constitutes a gross violation of the provisions of the 1999 Constitution. The court emphasized that such a move effectively transfers power from the local government to the state, undermining the autonomy and democratic legitimacy of the local government.
The apex Court warned that state governments are engaged in a perilous trend of subverting democracy by obstructing the functioning of democratically elected local government councils. It highlighted the inherent risks of state governors appointing their own loyalists to serve as caretaker committees, effectively turning local governments into mere puppets of state power.
The highest Court made it abundantly clear that local governments, as constitutionally recognized branches of government, are the only legitimate entities that should receive and administer funds designated for local government use.
Justice Agim declared, “I hold that the state’s retention of the local government funds is unconstitutional.
“Demands of justice requires a progressive interpretation of the law. It is the position of this court that the federation can pay LG allocations to the LGs directly or pay them through the states.
“In this case, since paying them through states has not worked, justice of this case demands that LG allocations from the federation account should henceforth be paid directly to the LGs.”
In its judgment, the Supreme Court asserted that funds allocated for local government use must be disbursed exclusively to democratically elect local government councils. Any deviation from this procedure, the court emphasized, would be considered a grave violation of the constitution and a clear case of gross misconduct.
The court declaration “A declaration that the state government has no power or control to keep the local government council money or funds.
“A declaration that the local government council is entitled to the local government allocation.
“An order of injunction restraining the defendants by themselves, agents or privies from spending local government allocation.
“A declaration that no state government should be paid any money meant for the local government.
“An immediate compliance to this judgment.”
This historic judgment was delivered in response to a lawsuit filed by the Federal Government to protect and ensure the financial independence of local government areas in Nigeria.
The Supreme Court had earlier dismissed the preliminary objections raised by the state governors, who sought to contest the legal standing and validity of the lawsuit.
Meanwhile, President Bola Tinubu has welcomed the decision of the Supreme Court of Nigeria, affirming the spirit, intent and purpose of the Constitution of the Federal Republic of Nigeria on the statutory rights of local governments, saying the “judgement will ensure that it will be only those local officials elected by the people that will control the resources of the people”.
Reacting to the judgement, President Tinubu noted that a fundamental challenge to the nation’s advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
The President emphasises that the onus is now on local council leaders to ensure that the broad spectrum of Nigerians living at that level are satisfied that they are benefitting from people-oriented service delivery.
