The Supreme Court of Nigeria has in a landmark judgment ruled that the 774 local government areas (LGAs) across the country be given full financial autonomy.
A seven-man panel of Supreme Court Justices led by Justice Garba Lawal delivered the ruling on Thursday, July 11, 2024.
The apex court initially heard the suit between the federal and state governments on the autonomy of local governments on June 13 and reserved its judgment.
The suit, marked SC/CV/343/2024, was filed by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), and sought full autonomy and direct fund allocation to the 774 local government areas (LGAs) in the country.
Fagbemi requested the Supreme Court to order that funds for LGAs managed by caretaker committees appointed by governors, rather than elected chairmen and councillors, be withheld.
The 36 state governors, represented by their attorneys general, however opposed the suit on various grounds, including their argument that the Supreme Court lacks jurisdiction to hear the case.
In its ruling on Thursday, the Supreme Court ordered that full financial autonomy be granted to the LGAs, recognizing them as an independent segment of the federation.
In the ruling delivered by Justice Emmanuel Agim, the Supreme Court criticized the longstanding denial by state governments of financial autonomy to local governments.
Justice Agim emphasized that the 774 local government councils across the country should independently handle their finances. He stressed that these funds are meant solely for democratically elected local government administrations, not caretaker committees.
He dismissed the defendants’ (state governors) preliminary objections.
In addition, the Supreme Court ruled that allocations from the Federation Account intended for Local Governments must be directly paid to them henceforth.
Justice Agim said that the withholding of funds by state governors disrupts the operations of Local Governments.
He therefore ordered immediate compliance with the judgement, emphasizing that state governments are prohibited from receiving funds allocated for Local Governments.