On Thursday, the Supreme Court ruled that it is unconstitutional for state governors to hold onto funds meant for local governments.
The seven-judge panel, led by Justice Emmanuel Agim, declared that the 774 local government councils across Nigeria should manage their own finances directly.
Justice Agim stated, “I hold that the state’s retention of the local government funds is unconstitutional.”
He explained that the 1999 Constitution clearly divides power between the federal, state, and local governments.
According to the court, local governments must be run by democratically elected officials and cannot be replaced by caretaker committees appointed by state governors.
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The court’s decision also prohibits state governments from controlling local government funds or spending them without proper authorization.
Justice Agim said, “A democratically elected local government is sacrosanct and non-negotiable.”
He emphasized that only elected councils are entitled to manage these funds.
The ruling follows a lawsuit filed by Attorney General of the Federation, Lateef Fagbemi (SAN), who argued that “the current practice of state governors controlling local government funds violated the Constitution. Fagbemi had urged the court to allow local governments to receive funds directly from the federal government.”
The court’s judgment also dismissed objections from state governments, which argued that “the Supreme Court did not have the authority to hear the case.”
Justice Agim confirmed that the Attorney General did have the right to bring the case and that the Supreme Court’s decision was final.
The court’s order means that state governments can no longer keep or control local government funds. The ruling demands that these funds be paid directly to local governments and managed by elected officials.
Justice Agim concluded, “An immediate compliance to this judgment is required.”