Court

Local Govt Funds: S ‘Court orders FG to pay allocations directly LG accounts

…Declares Joint Account illegal

…Okays local government autonomy

The Supreme Court of Nigeria on Thursday reinforced the autonomy of 774 local governments in the country as it declared state government holding of local government councils’ funds unconstitutional.

Apex Court ordered the Federal government to henceforth pay allocations meant for local government councils to each council directly from the federal revenue allocation account.

Before now funds meant for local government council are paid into the State government / local government joint account which made it almost impossible for the councils to access their funds as state governors control it and gave them what ever they feel.

Delivering the lead judgement on a suit filed by Federal government through Attorney General of Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, against the 36 state governments and Federal Capital Territory Administration, Justice Emmanuel Agim also barred the governors from receiving, tampering or withhold funds meant for the local governments.

The apex court further ordered that the Federation Account Committee must henceforth pay directly all monies standing to the credit of local governments in the country to each of 774 local governments.

The governors were also barred from henceforth dissolving democratically elected officials of local governments and that doing so would amount to a breach of the 1999 Constitution.

The apex court observed that the refusal of state governments to allow financial autonomy for local governments had gone on for over two decades.

He said local governments had since stopped receiving the money meant for them from the state governors who acted in their stead.

Justice Agim noted that the 774 local government councils in the country should manage their funds themselves.

He dismissed the preliminary objections filed by 36 state governments (state governors) who were the defendants to the suit as lacking in merit.

He said that the Attorney General of Federation has locus standi (legal right ) to institute the action to protect the constitution.

Fagbemi, the Federal Government had in the suit sought an order preventing the governors from arbitrarily dissolving democratically-elected councils , an order which the apex court unanimously granted.

Reacting to the judgement yesterday APC Chieftain and former Director General, Voice of Nigeria,VON, Mr Osita Okechukwu said the judgement is for restoration of democracy.

It is an iconic judgment which clearly will restore grassroot democracy in Nigeria.

“To me the iconic judgment will pure and simple, restore grassroot democracy in Nigeria from Emperor-Governors.
Today the judgment has also restructured our local government system; therefore I call on all to monitor and ensure the prudent management of the 20.6% Federal Revenue Allocation to local government councils.
I commend my Lord Justices of the Supreme and President Tinubu as his perseverance for the autonomy of local government councils has paid off.” Okechukwu opined.

Mr Okechukwu hailed the Justices of the Supreme Court for restoration of our collective interest in democracy at the grassroot level and the reinforcement of Section 7 of the 1999 Constitution of the Federal Republic of Nigeria which expressly stated that, the system of democratically elected local government councils is under this constitution guaranteed.

Okechukwu regretted that for 25 years our Emperor-Governors have violently breached Section 7 of our Constitution by brazen rigging of local councils elections and by extension mismanagement of the 20.6% local government funds; hence dampened the development of grassroot democracy.

He noted that President Bola Tinubu has by this judgment restructured our local government system and
commended Mr President.

He saluted his Attorney General Lateef Fagbemi for excellent suite which is a signpost for renewal of our hope in grassroot democracy via the temple of justice system.

This he said is especially when all efforts made in the past 25 years to grant financial autonomy to local government councils via the amendment of the constitution were blocked by Emperor-Governors.

Going further Okechukwu urged Nigerians from henceforth to rise up and monitor the 20.6% federal allocation to local government councils for prudent use in development of our rural communities.