The Federal Government should pay any money standing to the credit of the Local Governments in the Federation directly to the Local Government Areas managed by democratically elected officials, the Supreme Court has ruled.
The Supreme Court today made these pronouncements in its ongoing judgment in the suit filed by the Attorney General of the Federation (AGF) seeking full autonomy for the LGAs.
In a lead judgment by Justice Emmanuel Agim, the apex court has also held that it is unconstitutional for State Governments to retain and use allocation meant for the LGAs on their behalf without transferring same to them as provided in Section 162(3) of the Constitution.
Here are key takeaways from the Supreme Court’s ruling on LG allocations
The court declared that it is illegal and unconstitutional for governors to continue receiving and seizing funds allocated to LGAs, a practice ongoing for over two decades.
The apex court found that this practice violates Section 162 of the 1999 Constitution, as amended.
The court ordered that funds meant for LGAs must be paid directly from the federation account to the LGAs, rather than through the states.
The court emphasized that LGAs must be governed by democratically elected officials, declaring the appointment of caretaker committees by governors to run LGA affairs as unconstitutional.
The ruling underscores that the 36 states are obligated to ensure democratic governance at the third tier of government.
The court also dismissed the preliminary objections filed by state governors challenging the competence of the suit filed by the Federal Government to secure financial autonomy for the LGAs.
