S’court orders FG to pay allocations directly to LGs, bars governors from dissolving councils

The supreme court has ruled that the federal government should henceforth pay allocations directly to local government councils from the federation account.

Delivering judgment in the suit on Thursday, a seven-member panel of justices held that state governments have continued to abuse their powers by retaining and using the funds meant for LGAs.

The apex court also ordered the federal government to withhold allocations of LGs governed by unelected officials appointed by the governor.

Emmanuel Agim, who read the lead judgment, said states are mandated to ensure that their local government councils are democratically elected, ⁠and that governors cannot use their powers to dissolve democratically elected local government councils.

“The amount standing to the credit of local government councils must be paid by the federation to the local government councils and not by any other person or body,” the judge said.

“The said amount must be paid to local government councils that are democratically elected.

“An order of injunction is hereby granted restraining the defendants from collecting funds belonging to the local government councils when no democratically elected local government councils are in place.

“An order that henceforth no state government should be paid monies standing to the credit of the local government councils.

“An order for immediate enforcement and compliance with these orders by the state governments and successive governments henceforth.”

BACKGROUND

In May, the federal government filed a suit at the supreme court against governors of the 36 states.

In the suit marked SC/CV/343/2024, the federal government asked for full autonomy for the country’s 774 local governments.

In the suit filed by Lateef Fagbemi, attorney-general of the federation (AGF) and minister of justice, the federal government also requested the supreme court to authorise the direct transfer of funds from the federation account to local governments — in accordance with the constitution.

The suit was hinged on 27 grounds.

“That the constitution of Nigeria recognizes federal, states and local governments as three tiers of government and that the three recognized tiers of government draw funds for their operation and functioning from the federation account created by the constitution,” the originating summons had read.

“That all efforts to make the governors comply with the dictates of the 1999 Constitution in terms of putting in place a democratically elected local government system, has not yielded any result and that to continue to disburse funds from the federation account to governors for non-existing democratically elected local governments is to undermine the sanctity of the 1999 constitution.”

The federal government had asked the apex court to invoke sections 1, 4, 5, 7 and 14 of the constitution to declare that the governors and state houses of assembly are under obligation to ensure democratically elected systems at the third tier.