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Supreme Court Bars Governors From Holding Local Govt Funds, Affirms Nigerian LG Autonomy

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The Supreme Court has delivered judgment in the suit instituted by the Federal Government against the 36 state governors on local government autonomy.
In the suit, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), sought full autonomy and direct fund allocation to the 774 local governments in the country.

In the suit predicted on 27 grounds, the Federal Government accused the state governors of gross misconduct and abuse of power.

The Federal Government prayed the Supreme Court to make an order expressly stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.

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In the suit marked SC/CV/343/2024, the AGF prayed the court for an order prohibiting state governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government executives.

The government also prayed for “an order of injunction restraining the governors, their agents and privies from receiving, spending or tampering with funds released from the Federation Account for the benefits of local governments when no democratically elected local government system is put in place in the states.”

Prayers

Mr Fagbemi in the originating summons prayed the Supreme Court for an order permitting the funds standing in the credits of local governments to be directly channelled to them from the Federation Account in line with the provisions of the Constitution as against the alleged unlawful joint accounts created by governors.

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He also sought an order of the court stopping governors from constituting caretaker committees to run the affairs of local governments as against the constitutionally recognised and guaranteed democratic system.

He also applied for an order of injunction restraining the governors, their agents, and privies from receiving, spending, or tampering with funds released from the federation account for the benefit of local governments when no democratically elected local government system is put in place.

Mr Fagbemi asked the Supreme Court to invoke sections 1, 4, 5, 7, and 14 of the constitution to declare that the state governors and State Houses of Assembly are under obligation to ensure a democratic system at the third tier of government.

The suit also urged thecourt to invoke the same sections to hold that the governors cannot lawfully dissolve democratically elected local government areas.

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In a 13-paragraph affidavit in support of the originating summons deposed to by Kelechi Ohaeri from the AGF’s office, Mr Fagbemi averred in the suit filed under the original jurisdiction of the Supreme Court on behalf of the federal government.

In its lead judgement read by Justice Emmanuel Agim, the apex court declared that it is unconstitutional for governors to hold on to funds meant for Local Government (LG) administrations.

Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades.

According to him, local governments have since stopped receiving the money meant for them from the state governors who act in their stead.