Nigeria’s apex court has ruled that it is unconstitutional for the state governors to hold on to funds meant for local government administrations.
This was the decision on Thursday in the suit by the federal government through the Attorney General of the Federation against the 36 state governors.
The judgment by Justice Emmanuel Agim, was a unanimous decision and held that the refusal of the state governments on financial autonomy for local governments has gone on for over two decades.
He said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
Justice Agim held that it was time the 774 local government councils in the country managed their funds themselves.
The Supreme Court justice therefore dismissed the preliminary objections of the state governors.
The suit filed by that federal government sought an order preventing the governors from arbitrarily dissolving democratically elected councils.
Justice Agim said the AGF has the right to institute the suit and protect the constitution.
The court consequently directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.
On May 23, 2024, a Federal High Court sitting in Abuja presided over by Justice Inyang Ekwo delivered a judgment in favour of the federal government and the Nigerian Financial Intelligence Unit (NFIU) on local government joint accounts nationwide.
