The Supreme Court has prohibited the 36 state governors from retaining or using funds designated for the 774 Local Government Areas (LGAs) across the country.
The court ruled that it is both illegal and unconstitutional for governors to seize funds allocated to LGAs within their states. This longstanding practice, ongoing for over two decades, was found to violate Section 162 of the 1999 Constitution, as amended.
In the lead judgment delivered by Justice Emmanuel Agim, the court stated that no state House of Assembly has the authority to enact laws that interfere with funds meant for LGAs.
The court emphasized that LGAs must be governed by democratically elected officials, and ordered that funds allocated to LGAs be paid directly to them from the federation account.
Demands of justice require a progressive interpretation of the law. This court holds that the federation can pay LGA allocations directly or through the states. Since paying through the states has failed, LGA allocations should henceforth be paid directly to the LGAs, the court ruled.
The Supreme Court also declared the appointment of caretaker committees by governors to manage LGAs as unconstitutional, stating that all 36 states are obligated to ensure democratic governance at the local level.
This judgment followed a suit filed by the Federal Government seeking financial autonomy for LGAs. The court had earlier dismissed preliminary objections by state governors challenging the suit’s competence.
