The Federal Government on Thursday floored the 36 state governors at the Supreme Court as the apex court granted full financial autonomy to the 774 local governments in the country.
The seven-man panel in a unanimous decision outlawed the appointment of caretaker committees to administer the local governments by state governors.
The panel also declared that it was illegal and unconstitutional for governors to continue to receive or retain funds allocated to the local councils, under State and Local Government Joint Account.
The court delivered the landmark judgment in suit: SC/CV/343/2024, filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN) against the 36 state governors.
The AGF had sued the state governors through their respective state attorneys-general.
By this development, the governors’ control of the 774 councils’ allocation has been halted.
An analysis of the monthly distribution document released by the National Bureau of Statistics indicates that the LGAs got N2.6tn allocations from the Federal Accounts Allocation Committee between January and December 2023.
In the first five months of 2024, the local councils have also received N1.42tn.
Also, several states without elected local government officials may have their council allocation withheld.
The states include Rivers, Ondo, Osun and Plateau whose LGAs are being run by caretaker committees.
In the originating summons, the AGF prayed the court to order the direct allocation of funds from the federation account to the local governments.
He also sought an order prohibiting the unlawful dissolution of local government administration and the state governors’ appointment of caretaker committees to run the councils.
The suit was hinged on 27 grounds that the constitution of Nigeria recognises federal, state and local government as three tiers of government.
All the governors opposed the suit. They urged the apex court to strike out the case for being grossly incompetent.
They claimed the AGF lacked the locus standi to institute the suit for the local governments.
In the lead judgement delivered by Justice Emmanuel Agim, the apex court declared that the government was portioned into three tiers-federal, state and local governments.
The court further declared that a state government had no power to constitute a caretaker committee and that a local government council is only recognisable with a democratically elected government.
“A democratically elected local government is sacrosanct and non-negotiable,’’ the apex court declared, putting an end to the practice of appointing caretaker committees to run the councils by the state governors.
The court held that the use of a caretaker committee by the state governments to administer the local government violated the 1999 Constitution.
The Supreme Court further held that the LGAs should be governed by a democratically elected government but “the states by the abuse of their power has worked against this law.”
The court declared that the 36 state governors had no power to dissolve democratically elected local government councils to replace them with caretaker committees.
“Such an act is unlawful, unconstitutional, null and void,’’ Agim stated.
The apex court barred the state governors from receiving, retaining or spending the local government allocation.
It said the practice of receiving and retaining local government funds by the states had gone on for too long and that it was a clear violation of section 162 of the 1999 Constitution, as amended.
The court held that the 1999 Constitution, as amended, states that any money leaving the federation account must be distributed to the three tiers of government.
It added the local government administrations should receive and manage funds meant for the local councils.
Agim declared, “I hold that the state’s retention of the local government funds is unconstitutional.
“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.”
Granting other reliefs sought by the Federal Government, the apex court affirmed “A declaration that the local government council funds must be paid to only democratically elected local government council. Anything other than this will be taken as a gross misconduct.”
Other reliefs granted include “a declaration that the state government has no power or control to keep the local government council money or funds.
“A declaration that the local government council is entitled to the local government allocation.’’
The Supreme Court also granted “An order of injunction restraining the defendants by themselves, agents or privies from spending local government allocation.
“A declaration that no state government should be paid any money meant for the local government; an immediate compliance to this judgement.”
Earlier, the Supreme Court dismissed the preliminary objection of the state governors, describing it as frivolous.
The apex court held that as the chief law officer of the federation, the AGF has the right to sue in the public interest to protect and enforce public laws.
The court added that the AGF also has every right to file the suit as the subject matter of the suit is not speculative, noting that he also has the right to protect the Constitution and prevent any government features from going extinct.
“I hold that the plaintiff’s request is hereby approved and all the reliefs granted,’’ Agim stated.
President Bola Tinubu, has lauded the judgement.
Welcoming the verdict, the President said it “Affirmed the spirit, intent, and purpose of (Nigeria’s) Constitution on the statutory rights of local governments.”
According to him, a fundamental challenge to the nation’s advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
He stated this in a statement signed by his Special Adviser on Media and Publicity, Ajuri Ngelale, titled ‘President Tinubu welcomes Supreme Court judgement affirming constitutional rights of local governments.‘
The President emphasised that the onus was on local council leaders to ensure that the broad spectrum of Nigerians living at that level were satisfied that they were benefitting from people-oriented service delivery.
He said, “The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us. This country belongs to all of us.
“By virtue of this judgement, our people – especially the poor – will be able to hold their local leaders to account for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses.”
The President noted that Thursday’s judgement stands as “A resounding affirmation that we can use legitimate means of redress to restructure our country and restructure our economy to make Nigeria a better place to live in and a fairer society for all of our people.”
He said the provision of some essential amenities and public goods, such as the construction and maintenance of certain roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has tottered owing to the emasculation of the local governments.
Therefore, he affirmed that the decision of the Supreme Court to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, is of historic significance and further reinforces the effort to enhance Nigeria’s true federal fabric for the development of the entire nation. – Punch.
