The Supreme Court on Thursday held that henceforth all Local Government Area allocations should be paid directly into their accounts.
Justice Emmanuel Agim who led a seven-member panel of the justices of the apex court, gave the order while delivering judgment in a suit filed by the federal government against the 36 state governors.
“Henceforth, no more payment of the Local Government Area allocations to the state government accounts,” the judge held.
FG drags State Governors to Supreme Court over LG ‘misconduct’
The Supreme Court barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 Local Government Areas, LGAs, in the country.
The apex court ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.
It maintained that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.
The Supreme Court noted that the 774 local government councils in the country should manage their funds themselves.
In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.
Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.
“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.
“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” the apex court held.
It further declared unconstitutional the appointment of caretaker committees by governors to run the affairs of the LGAs.
It held that the 36 states are under obligation to ensure democratic governance at the third tier of government
BRANDPOWER reports that the Federal Government approached the Supreme Court with a suit seeking to compel governors of the 36 states of the federation to grant full autonomy to the local governments in their domains.
The suit, marked SC/CV/343/2024, was filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), on behalf of the Federal Government.
The Federal Government is urging the apex court to issue “an order prohibiting state governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders for local governments.”
In the suit predicted on 27 grounds, the Federal Government accused the state governors of gross misconduct and abuse of power.
The FG, in the originating summons, prayed the Supreme 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.
The justice minister 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.”
The Federal Government further sought “an order stopping governors from constituting caretaker committees to run the affairs of local governments as against the Constitutionally recognised and guaranteed democratically system.”
