The Supreme Court has prohibited the 36 state governors from retaining or utilizing funds intended for the 774 Local Government Areas (LGAs) in Nigeria. This decision ensures that LGAs will receive their allocated funds directly from the federation account, reinforcing their financial independence.
The apex court deemed the long-standing practice of governors seizing LGA funds as illegal and unconstitutional, highlighting that it violates Section 162 of the 1999 Constitution. Justice Emmanuel Agim, delivering the lead judgment, emphasized that state legislatures lack the authority to pass laws interfering with LGA finances.
The court’s ruling mandates that LGAs be governed by democratically elected officials and invalidates the appointment of caretaker committees by governors. This decision obligates all states to uphold democratic governance at the local level.
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This judgment was the result of a suit filed by the Federal Government to secure financial autonomy for the LGAs. The Supreme Court dismissed preliminary objections from state governors challenging the suit’s competence, solidifying the LGAs’ right to direct financial allocations.
By ending the governors’ control over LGA funds, this ruling aims to promote transparency and accountability in the management of local government finances, fostering grassroots development and governance.
