Supreme Court of Nigeria grants financial autonomy to Local Governments in Nigeria.
The Supreme Court of Nigeria has granted full financial autonomy to Local Governments in Nigeria.
According to Vanguard, the Supreme Court highlighted that this “dubious practice,” which has persisted for over two decades, violates Section 162 of the 1999 Constitution, as amended. Justice Emmanuel Agim, delivering the lead judgment, stated that no state House of Assembly has the authority to enact laws that interfere with funds designated for the LGAs.
Emphasizing the constitutional requirement for LGAs to be governed by democratically elected officials, the court mandated that henceforth, funds meant for LGAs must be directly paid to them from the federation account.
The court’s decision reflects a progressive interpretation of the law to ensure justice is served. It concluded that the federation could either pay LGA allocations directly to the LGAs or through the states.
However, since the latter method has proven ineffective, the court ruled that LGA allocations from the federation account should now be paid directly to the LGAs.
The court also declared the appointment of caretaker committees by governors to manage LGA affairs unconstitutional. It affirmed that the 36 states are obligated to ensure democratic governance at the local government level.
This ruling follows a suit filed by the Federal Government seeking financial autonomy for the LGAs, marking a significant step towards strengthening local governance and ensuring that funds intended for local development are used appropriately.
