Breaking: Supreme Court rules state governors cannot hold LG funds

The Supreme Court on Thursday ruled that it is unconstitutional for state governors to withhold funds intended for Local Government (LG) administrations.

In the ruling, the apex court emphasized the importance of financial autonomy for local governments.

Justice Emmanuel Agim, delivering the lead judgment, explained that the denial of financial independence for local governments by state governments has persisted for over two decades. 

He stated, “Local governments have stopped receiving the money meant for them from the state governors who act in their stead.”

Justice Agim noted that the 774 local government councils in Nigeria should manage their funds independently. 

He dismissed the preliminary objections raised by the state governors, reinforcing the position that local governments deserve financial self-sufficiency.

The case, filed by the Attorney-General of the Federation (AGF), Lateef Fagbemi, sought to prevent state governors from arbitrarily dissolving democratically elected councils. The suit, based on 27 grounds, aimed to protect the constitutional rights of local governments.

Justice Agim affirmed the AGF’s right to bring the suit, stating, “The AGF has the right to institute the suit and protect the constitution.” 

The apex court consequently directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.

Details later…