The Supreme Court has declared it unconstitutional for state governors to withhold funds intended for local government (LG) administrations.
In a key judgment read by Justice Emmanuel Agim, it was said that the Supreme Court observed that the state government’s refusal to grant financial autonomy to local governments has lasted for over two decades.
The Supreme Court held that local governments have since stopped receiving money earmarked for them from state governors acting on their behalf. Judge Agim noted that the 774 local government councils in the country should manage their own funds. He rejected the preliminary objections of the defendants (state governors).
In the suit filed by the Attorney General of the Federation (AGF), Lateef Fagbemi, the federal government sought an order restraining governors from arbitrarily dissolving democratically elected councils.
Judge Agim said that AGF has the right to file a lawsuit and protect the Constitution. Accordingly, the Supreme Court ordered that from now on the allocation to local authorities from the Federation account should be paid directly to them.