Friday, July 12, 2024

Supreme Court Ruling Shakes Up Local Government Funding and Autonomy in 21 Nigerian States

Following a Supreme Court judgment, there is widespread concern in at least 21 states as the court ruled to halt allocations to non-democratically elected local government chairmen.

The Supreme Court's decision, delivered on Thursday, marked a significant victory for local government autonomy, ending years of struggles for self-governance. The ruling grants full autonomy to the 774 local governments in Nigeria, aiming to curb the abuse of their affairs by some state governors. The court ordered that funds from the federation account be paid directly to the respective bank accounts of local governments.

Furthermore, the court prohibited governors and their associates from receiving, tampering with, or withholding funds meant for local governments. The ruling, delivered by Justice Emmanuel Akomaye Agim, also barred governors from dissolving democratically elected local government officials, stating that doing so would violate the 1999 Constitution.

The Supreme Court's unanimous decision upheld the argument of the Attorney General of the Federation and Minister of Justice, Prince Lateef Olasunkanmi, that local governments are recognized as the third tier of government by the Nigerian Constitution. The court also agreed that some state governors have used the Constitution to justify unconstitutional acts over the past two decades. The apex court ordered that the Federation Account withhold funds from local governments lacking democratically elected officials.

On May 24, the Federal Government, represented by Fagbemi SAN, filed a lawsuit against the 36 governors, accusing them of misconduct in managing local government affairs. The suit sought full autonomy for local governments. The Supreme Court rejected the governors' request to dismiss the suit, deeming it frivolous and lacking merit.

The landmark judgment mandates that monthly allocations be sent directly to local governments and withholds funds from those managed by non-democratically elected officials. As a result, local governments in 21 states, including Jigawa, Rivers, Anambra, and others, will not receive their July allocation from the Federation Account Allocation Committee (FAAC).

Some states had scheduled local government elections, while others had no immediate plans to establish democratically elected chairmen. The decision has prompted reactions from various quarters, including Anambra State Governor Prof. Chukwuma Soludo, who announced an emergency Governors Forum meeting to review the judgment.

President Bola Tinubu praised the decision, stating it reaffirms the statutory rights of council dwellers and eliminates excuses for local government chairmen in providing grassroots governance. Tinubu emphasized the importance of holding local leaders accountable and commended the Attorney General for his efforts.

The National Union of Local Government Employees (NULGE) lauded the judgment, with its National President, Mr. Ambali Olatunji, stating that it addresses over 50 percent of Nigeria's problems by promoting financial integrity and development at the local government level.

Former Vice President Atiku Abubakar also supported the judgment, highlighting the need for fiscal autonomy for local governments and condemning state governors' past interference. Senate President Godswill Akpabio urged governors to respect the Supreme Court ruling and called for impartial local government elections.

Attorney General Fagbemi warned of dire consequences for states that disobey the judgment and expressed optimism that it would lead to local government development. Former Voice of Nigeria Director General Osita Okechukwu described the judgment as a restoration of grassroots democracy, criticizing governors for violating the Constitution for 25 years.

However, former Delta State Governor Chief James Ibori criticized the judgment as defective, arguing it undermines the principle of federalism and Section 162 of the Constitution, which mandates a joint account for local government allocations. He called the ruling an assault on the Constitution and warned of its far-reaching implications.

The Supreme Court's decision is expected to reshape local government administration in Nigeria, promoting transparency, accountability, and development at the grassroots level.

 

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