Supreme Court Grants Local Governments Financial Autonomy

The apex court has ruled that all state governors should henceforth steer clear of the funds meant for the 774 local government areas of the country, saying that the control of local government areas funds by States is unconstitutional. The Supreme Court delivered its judgment on Thursday, July 11, 2024

In the suit filed by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, sought full autonomy and direct fund allocation to the 774 local governments in the country. Fagbemi prayed the Supreme 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.

Justice Emmanuel Agim read the lead judgment, the court said state governors can’t hold on to funds meant for local government administrations.

Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades. According to him, local governments have since stopped receiving the money meant for them from the state governors who act in their stead.

While noting that the 774 local government councils in the country should manage their funds themselves, he dismissed the preliminary objections of the defendants (state governors). Justice Agim said the AGF has the right to initiate the suit and protect the constitution.

Accordingly, the apex court directed that local government allocations from the Federation Account should be paid directly to them henceforth.

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