Jonathan Nwokpor
The Federal Government is to begin the immediate direct payment of local government allocations to their exclusive accounts, as directed by the Supreme Court in a historic ruling on Thursday.
The apex court chastised the state government for its long-standing refusal to provide local governments financial autonomy in its main ruling, which was read aloud by Justice Emmanuel Agim.
Judge Agim stated that the nation’s 774 local government councils ought to handle their own financial management.
He overruled the defendants’ (state governors’) initial objections.
From now on, local government allocations from the Federation Account should be paid directly to them rather than the state government’s coffers, as instructed by the apex court.
Judge Agim noted that the state governors’ hoarding of funds intended for local governments truncates the latter’s activities.
Judge Agim mandated that the ruling be followed immediately and declared that no money intended for local governments should be given to the state government.
At Last, LG Autonomy!
There are 774 local government areas in the country, but the weight of a few authoritarian and domineering governors who have been charged with embezzlement of money intended for local government operations has hindered the effectiveness of the third tier of government.
In recent months, Nigerians have become more vocal in their demands for local government autonomy. President Bola Tinubu, endorsed the calls as well. The Attorney-General of the Federation (AGF), Lateef Fagbemi, on behalf of the Federal Government filed lawsuits against the 36 state governors in May due to alleged mismanagement of local government funding.
Presently, states receive 26.72% while the federal government receives 52.68%. By contrast, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), which functions under the Presidency, allots 20.60% of the nation’s monthly revenue to LGs, with the Federation Account Allocation Committee (FAAC) disbursing the funds.
It’s interesting to note that local and state governments in their respective areas jointly manage an account into which LG funds are deposited.
The Federal Government requested an order prohibiting the governors from arbitrary dissolution of democratically elected councils in the lawsuit brought by the AGF. The AGF filed a lawsuit on 27 grounds.
The AGF’s decision to bring the lawsuit was resisted by the 36 state governors who are the suit’s defendants.
However, Justice Agim stated that the AGF is entitled to file the lawsuit in order to defend the constitution.
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