Today, the Supreme Court issued a groundbreaking ruling declaring unconstitutional the longstanding practice by state governors of withholding funds designated for local governments. Justice Emmanuel Agim, in delivering the lead judgment, highlighted that this illegal practice has persisted for over two decades, severely limiting the operational autonomy of the country’s 774 local government councils.
The court’s decision stems from a lawsuit initiated by the Attorney General of the Federation, Lateef Fagbemi, who accused governors of undermining the financial independence of local governments. The federal government, in its plea, advocated for the direct allocation of funds from the Federation Account to local governments, bypassing state control.
Justice Agim dismissed the defendants’ objections, affirming the AGF’s authority to uphold the constitutional rights of local governments. As a result, the verdict mandates that all allocations meant for local governments must now be disbursed directly to them, effective immediately.
This ruling marks a significant advancement towards bolstering the independence and efficiency of local government administrations across Nigeria. It aims to reduce undue state interference and promote transparent governance at the grassroots level, fostering a more equitable distribution of resources for development initiatives nationwide.
