In a landmark ruling on Thursday, the Supreme Court declared that it is unconstitutional for state governors to withhold funds allocated to local government administrations. The judgment, delivered by Justice Emmanuel Agim on behalf of a seven-man panel, mandates that the 774 local government councils in Nigeria manage their funds independently.
The apex court emphasized the separation of powers among the federal, state, and local governments. Justice Agim stated that local government councils must be democratically elected and that any form of caretaker committee imposed by state governments is unconstitutional.
“A democratically elected local government is sacrosanct and non-negotiable,” Justice Agim affirmed, adding that the use of caretaker committees allows state governments to unlawfully control local governments, violating the 1999 Constitution.
The court’s decision underscored that local governments should directly receive and manage their funds. “I hold that the state’s retention of local government funds is unconstitutional,” Justice Agim declared. He further explained that the Supreme Court supports a progressive interpretation of the law, allowing local government allocations to be paid directly to the councils rather than through state governments.
The judgment included several declarations and injunctions:
– State governments have no authority to withhold local government funds.
– Local governments are entitled to receive their allocations directly.
– State governments are prohibited from spending local government allocations.
– Local government funds must be paid exclusively to democratically elected councils.
Justice Agim dismissed objections from state governors, upholding the Attorney General of the Federation (AGF) Lateef Fagbemi’s lawsuit seeking full autonomy and direct funding for all local government councils. The AGF argued that the dissolution of democratically elected local government leaders by state governors is unconstitutional and urged the Supreme Court to prohibit such actions.
The 36 state governments, represented by their attorneys general, contended that the Supreme Court lacked jurisdiction and that the AGF did not have the legal standing to file the suit. However, Justice Agim affirmed the AGF’s authority to initiate the lawsuit and upheld the constitutionality of the case.
“I hold that the plaintiff’s request is hereby approved and all the reliefs granted,” Justice Agim concluded, ensuring immediate compliance with the ruling and reinforcing the autonomy of local governments across Nigeria.
