The 36 state governors of Nigeria have been directed by the Supreme Court of the country to refrain from using funds intended for their 774 Local Government Areas going forward. The states’ control over the local government councils’ finances, according to the supreme court, is unconstitutional.
This ruling relates to a lawsuit that the federal government, acting through the Attorney General of the Federation, filed against the 36 state governors in an effort to fully free local government areas from the jurisdiction of the state governors, who up until this point had control over the funds and appointed caretaker committees to oversee local government operations.
The apex court has ruled in a landmark decision that the Constitution, specifically Section 162 (4,5 and 6), does not establish a joint account for state and local government councils. The panel of seven justices, led by Justice Lawal Garba, made this determination.
The court directed that payments intended for local government councils be made directly from the federation account going forward, rather than via state governors, in the lead judgement, which was prepared and read by Justice Emmanuel Agim.
The court determined that the purpose of the constitution’s clause requiring the states to receive funds intended for local government councils is to allow them to function as the federal government’s agents in distributing those funds. It continues by saying that as a result, the states are free to spend the money anyway they see fit.
It held that by hoarding money intended for local government councils, the states are abusing the powers entrusted to them by the Constitution.
The court also bemoaned the fact that this has continued for more than 20 years, severely impairing the third level of government’s ability to function effectively.
Regarding the complete autonomy of local government areas, the highest court declared that state governors have been “a species most dangerous” to the democratic structure of local government councils for more than 20 years. According to the ruling, these governors’ installation of caretaker committees is unlawful because they lack the authority to do so.
The apex court further held in a unanimous ruling that local government councils must be led democratically and that no state governor has the authority to remove duly elected local government leaders and replace them with officials of their choosing.
Therefore, in the event that a state does not implement a democratically elected local government system, the apex court has also ordered the governors to refrain from accepting, using, or interfering with funds released from the federation account for the local governments.
It was thus decided that Nigeria’s federal, state, and local governments are recognised as three levels of government under the country’s constitution, and that each of these governments receives funding from the federation account established by the document.
The state governors were ordered to immediately comply with the ruling by the highest court.
