The Supreme Court declared on Thursday that it is unconstitutional for state governors to withhold funds meant for Local Government (LG) administrations.
In the lead judgment delivered by Justice Emmanuel Agim, the apex court noted that state governments have denied financial autonomy to local governments for over two decades.
Justice Agim highlighted that local governments have stopped receiving funds intended for them, with state governors controlling the disbursements instead. He emphasized that the 774 local government councils in the country should manage their own funds.
The court dismissed the preliminary objections of the defendants (state governors).
The suit, filed by Attorney-General of the Federation (AGF) Lateef Fagbemi, sought an order preventing governors from arbitrarily dissolving democratically elected councils. The AGF’s suit was based on 27 grounds.
Justice Agim affirmed that the AGF has the right to institute the suit and uphold the constitution.
The apex court consequently directed that Local Government allocations from the Federation Account be paid directly to the local governments henceforth.
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