Supreme Court grants full financial autonomy to 774 LGAs, declares caretakers illegal

“Justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs”

By Ezurike Ugochukwu

The Supreme Court of Nigeria has ruled that the 774 local government areas (LGAs), deserve full financial autonomy across the federation as well as appointment of caretaker committees illegal.

Seven-man panel of the Apex Court led by Justice Emmanuel Akomaye Agim,  while delivering the ruling Thursday(today), ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.

The apex Court Initially heard the suit between the federal and State government on the autonomy of local government on June 13 and its reserved judgment.

The suit filed by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), marked SC/CV/343/2024, had sought full autonomy and direct fund allocation to the 774 LGAs in the country.

Fagbemi requested the Supreme Court to order that funds for LGAs managed by caretaker committees appointed by governors, rather than elected chairmen and councilors, be withheld.
However, the 36 state governors, represented by their attorneys general, oppose the suit on various grounds, including their argument that the Supreme Court lacks jurisdiction to hear the case.

In its rolling this Thursday, the Supreme Court ordered that full financial autonomy be granted to the LGAs, recognizing them as an independent segment of the federation.
Stressing position of law on governing the LGAs by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.

The court said, “Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.

“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” the apex court held.

CLEAR AND UNAMBIGUOUS POSITION OF SUPREME COURT ON 774 LGA AUTONOMY

The Supreme Court states thus:

1. Allocations are to be paid directly to Local Government Councils immediately.

2. The Section of the Constitution for joint allocations automatically got deleted without NASS Amendment .

3. Appointment of Caretaker committees is illegal and unconstitutional, no governor has any powers to appoint any CTC.

4. That State governors have constituted themselves as dangerous species to the development of democracy.

Only LGAs that have democratically elected governments in place have their allocation paid.
This implies that states are to from now cease to operate local government caretaker committee chairmanship, as any state still operating local government caretaker committee will not be given her local government allocation and such allocation will be withheld and not released to neither the state governors nor the local government caretaker committee chairmen any more.