The Supreme Court declared on Thursday that it is unconstitutional for state governors to hold funds allocated to Local Government administrations.
The suit was instituted by the Federal Government against the 36 state governors of the federation on local government autonomy.
In the suit, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), sought full autonomy and direct fund allocation to the 774 local governments in the country.
He asked the apex court to invoke sections 1, 4, 5, 7 and 14 of the constitution to declare that the governors and state houses of assembly are under obligation to ensure democratically-elected systems at the third tier.
In its 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 (LG) administrations.
Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades.
According to him, 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, he dismissed the preliminary objections of the defendants (state governors).
Justice Agim said the AGF has the right to institute the suit and protect the constitution.
Consequently, the apex court directed that local government allocations from the Federation Account should be paid directly to them henceforth.
