Finally, Supreme Court Grants LGs Autonomy, Ruled Against Govs Holding Council Funds

ABUJA, FCT, NIGERIA – Supreme Court has finally granted local government councils in the country the long-sought autonomy, barring State Governors from withholding LG funds.

The apex court gave this verdict on Thursday, July 11, 2024, while delivering judgment in the suit instituted by the Federal Government against the 36 state Governors on local government autonomy.

The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), in the suit, sought full autonomy and direct fund allocation to the 774 local government councils in the country.

In the suit, Federal Government predicated on 27 grounds, accusing the state Governors of gross misconduct and abuse of power.

Federal Government prayed the apex 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.

FG 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.”

In the 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 administrations.

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

The court averred that local governments have since stopped receiving the money meant for them from the state Governors who act in their stead.

While noting that the 774 local government councils in the country should manage their funds themselves, the court dismissed the preliminary objections of the defendants (state Governors).

The apex court also said the AGF has the right to institute the suit and protect the constitution.

Consequently, the apex court directed that henceforth, Local Government allocation from the Federation Account should be paid directly to them.

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