Governors Can’t Control  Local Government Funds, Supreme Court Affirms

The Supreme Court of Nigeria made a ruling on Thursday. It declared that it is unconstitutional for state governors to withhold funds meant for Local Government (LG) administrations.

This decision paves the way for financial independence for local governments, which have been under the control of state governors for over twenty years.

Granting Financial Independence to Local Governments

Justice Emmanuel Agim, who delivered the leading judgment, said that local governments should directly receive and manage their funds without state interference.

This ruling impacts all 774 local government areas across the country, which have not received their proper funds, affecting their operational effectiveness.

The decision also tackles the longstanding practice of placing local government funds into joint accounts controlled by state governments. This practice has been criticised for causing financial mismanagement and lack of clarity.

The Supreme Court’s order now ensures that local government allocations from the Federation Account will go directly to them, not to the state governments.

A Legal Milestone for Local Governance

The case reached the Supreme Court after the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued all 36 state governors. He accused them of wrongly using funds intended for local governments.

The lawsuit aimed to protect local governments from being unjustly dissolved by state governors and to ensure their financial autonomy.

The court’s decision has been welcomed by supporters of local government autonomy, including President Bola Tinubu, who has echoed the increasing calls for this reform.

The ruling strengthens the constitutional rights of local governments and promises to boost their governance and efficiency by giving them control over their finances.

Justice Agim stressed the need for immediate action, stating that no state government should interfere with or control funds meant for local governments from now on.