For the third time since Nigeria returned to civilian rule in 1999, the Federal Government is once again in a standoff with state governments over the autonomy of local government areas (LGAs).
The first clash occurred in 2008/2009 when the Federal Government opposed the creation of new LGAs by states. The second confrontation was during the tenure of former President Muhammadu Buhari, who attempted to withhold allocations to LGAs without democratically elected officials.
Now, the Federal Government has taken all 36 states to the Supreme Court over this issue. The lawsuit began on May 26, and the Supreme Court has scheduled a full hearing for June 13, the day after the June 12 Democracy Day celebration.
This latest legal battle raises several critical questions: Will the Supreme Court side with the Federal Government on the issue of withholding allocations to undemocratic LGAs? Will the Federal Government bypass states and remit funds directly to local councils? Who ultimately controls the councils, the Federal Government or the states?
The Constitution currently recognizes states as federating units, while councils are the third tier of government.
During his tenure as Lagos State Governor, now President Bola Tinubu, created 37 new councils, leading to a conflict with then-President Olusegun Obasanjo, who declared the new councils illegal as the Constitution lists only 774 LGAs. Other states also created new councils, but Tinubu remained defiant, leading to a legal battle that concluded at the Supreme Court. The court ruled that states could create councils, but they must be ratified by the National Assembly to be listed in the Constitution. Consequently, Tinubu’s councils were designated as Local Council Development Areas (LCDAs).
On May 30, the Supreme Court set a hearing date for June 13 and ordered the governors to respond to the Federal Government’s suit within seven days. The Federal Government, through Attorney General and Minister of Justice Lateef Fagbemi, seeks an order ensuring LGA autonomy. The central argument is that state governors have hindered efficient governance at the local level by retaining funds meant for LGAs in joint accounts.
The Federal Government is pushing for: An order prohibiting state governors from dissolving democratically elected local government leaders unilaterally. Direct channelling of funds to LGAs from the Federation Account. An injunction preventing governors from tampering with funds for LGAs if no democratically elected system is in place.
In December 2022, former President Buhari accused governors of misappropriating LGA funds and tried to stop it. Governors opposed moves by the Nigerian Finance Intelligence Unit (NFIU) to abolish state/LGA joint accounts. Despite the opposition, the Senate later urged the Federal Government to halt allocations to LGAs managed by caretaker committees.
Currently, 454 out of 774 LGAs (58.66%) in Nigeria do not have democratically elected officials, contrary to Section 7 of the 1999 Constitution, which guarantees a democratically elected local government system. The number may increase as the tenure of council officers in Rivers State expires in June.
Peter Ameh, former National Chairman of the Inter-Party Advisory Council (IPAC), criticizes the lack of democracy in local councils, attributing the collapse of the local economy to this failure. Ameh argues that the absence of transparent elections undermines democracy, facilitates corruption, and causes poor governance and mismanagement.
Ameh advocates for significant electoral reforms to ensure local government autonomy. He proposes: Amending the Constitution to guarantee the structure and functions of local governments. Abolishing State Independent Electoral Commissions (SIECs) and integrating their functions into the Independent National Electoral Commission (INEC). Appointing non-partisan, career officers as electoral officials at state and local levels.
The ongoing legal and political tussle underscores the urgent need for clarity and reforms to strengthen local governance in Nigeria.
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