Supreme Court bars FG from releasing allocations to LGs with unelected officials

The Supreme Court on Thursday barred the Federal Government from releasing allocations to local governments governed by unelected officials appointed by the state governor.

The apex court gave the order while delivering judgment in the local government autonomy suit filed by the Attorney General of the Federation, AGF, Lateef Fagbemi, SAN, on behalf of the Nigerian Government.

In the judgment, Justice Emmanuel Agim barred the Federal Government from further paying LG allocations through the state governments, noting that the practice had been abused by governors.

Justice Agim accused state governors of retaining allocations and utilising them as they please, to the detriment of the local government councils.

READ ALSO: Supreme Court delivers judgement on local government autonomy

In its lead judgement read by Justice Emmanuel Agim, the apex court scolded the decades-long refusal of the state government on financial autonomy for local governments.

Justice Agim noted that the 774 local government councils in the country should manage their funds themselves. He said only democratically elected local government administrations are entitled to these funds and not caretaker committees.

He dismissed the preliminary objections of the defendants (state governors).

The apex court directed that Local Government allocations from the Federation Account should be paid directly to them henceforth, and not to state government coffers.

Justice Agim pointed out that the state governors’ retention of the monies meant for the Local Governments truncates the latter’s activities.

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Justice Agim ordered the immediate compliance of the judgement, stating that no state government should be paid monies meant for Local Governments.

There are 774 local government areas in the country but the efficiency of the third tier of government has been hampered by the weight of some controlling and overbearing governors who have been accused of mismanaging funds meant for the administration of local governments.

READ ALSO: FG sues 36 State Governors, seeks full autonomy for Local Government 

In the last few months, calls for local government autonomy have increased in Nigeria. President Bola Tinubu also supported the calls. In May, the Federal Government, through the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds.

Currently, the Federal Government gets 52.68%, and states get 26.72%. In comparison, LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).

In the suit filed by AGF, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils. The suit by the AGF was on 27 grounds.

The 36 state governors, defendants in the suit, opposed the AGF for instituting the case.

But Justice Agim said the AGF has the right to institute the suit and protect the constitution.