The Federal Government on Thursday floored the 36 state governors at the Supreme Court as the apex court granted full financial autonomy to the 774 local governments in the country.
The seven-man panel in a unanimous decision outlawed the appointment of caretaker committees to administer the local governments by state governors.
The panel also declared that it was illegal and unconstitutional for governors to continue to receive or retain funds allocated to the local councils, under State and Local Government Joint Account.
The court delivered the landmark judgment in suit: SC/CV/343/2024, filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN) against the 36 state governors.
The AGF had sued the state governors through their respective state attorneys-general.
By this development, the governors’ control of the 774 councils’ allocation has been halted.
An analysis of the monthly distribution document released by the National Bureau of Statistics indicates that the LGAs got N2.6tn allocations from the Federal Accounts Allocation Committee between January and December 2023.
In the first five months of 2024, the local councils have also received N1.42tn.
Also, several states without elected local government officials may have their council allocation withheld.
The states include Rivers, Ondo, Osun and Plateau whose LGAs are being run by caretaker committees.
In the originating summons, the AGF prayed the court to order the direct allocation of funds from the federation account to the local governments.
He also sought an order prohibiting the unlawful dissolution of local government administration and the state governors’ appointment of caretaker committees to run the councils.
AGF’s case
The suit was hinged on 27 grounds that the constitution of Nigeria recognises federal, state and local government as three tiers of government.
All the governors opposed the suit. They urged the apex court to strike out the case for being grossly incompetent.
They claimed the AGF lacked the locus standi to institute the suit for the local governments.
In the lead judgement delivered by Justice Emmanuel Agim, the apex court declared that the government was portioned into three tiers-federal, state and local governments.
The court further declared that a state government had no power to constitute a caretaker committee and that a local government council is only recognisable with a democratically elected government.
“A democratically elected local government is sacrosanct and non-negotiable,’’ the apex court declared, putting an end to the practice of appointing caretaker committees to run the councils by the state governors.
The court held that the use of a caretaker committee by the state governments to administer the local government violated the 1999 Constitution.
S’Court faults caretakers
The Supreme Court further held that the LGAs should be governed by a democratically elected government but “the states by the abuse of their power has worked against this law.”
The court declared that the 36 state governors had no power to dissolve democratically elected local government councils to replace them with caretaker committees.
“Such an act is unlawful, unconstitutional, null and void,’’ Agim stated.
The apex court barred the state governors from receiving, retaining or spending the local government allocation.
It said the practice of receiving and retaining local government funds by the states had gone on for too long and that it was a clear violation of section 162 of the 1999 Constitution, as amended.
The court held that the 1999 Constitution, as amended, states that any money leaving the federation account must be distributed to the three tiers of government.
It added the local government administrations should receive and manage funds meant for the local councils.
Agim declared, “I hold that the state’s retention of the local government funds is unconstitutional.
“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.”
Granting other reliefs sought by the Federal Government, the apex court affirmed “A declaration that the local government council funds must be paid to only democratically elected local government council. Anything other than this will be taken as a gross misconduct.”
Other reliefs granted include “a declaration that the state government has no power or control to keep the local government council money or funds.
“A declaration that the local government council is entitled to the local government allocation.’’
The Supreme Court also granted “An order of injunction restraining the defendants by themselves, agents or privies from spending local government allocation.
“A declaration that no state government should be paid any money meant for the local government; an immediate compliance to this judgement.”
Court faults govs
Earlier, the Supreme Court dismissed the preliminary objection of the state governors, describing it as frivolous.
The apex court held that as the chief law officer of the federation, the AGF has the right to sue in the public interest to protect and enforce public laws.
The court added that the AGF also has every right to file the suit as the subject matter of the suit is not speculative, noting that he also has the right to protect the Constitution and prevent any government features from going extinct.
“I hold that the plaintiff’s request is hereby approved and all the reliefs granted,’’ Agim stated.
Meanwhile, President Bola Tinubu, the Nigeria Labour Congress, the National Union of Local Government Employees and others have lauded the judgement.
Welcoming the verdict, the President said it “Affirmed the spirit, intent, and purpose of (Nigeria’s) Constitution on the statutory rights of local governments.”
According to him, a fundamental challenge to the nation’s advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
He stated this in a statement signed by his Special Adviser on Media and Publicity, Ajuri Ngelale, titled ‘President Tinubu welcomes Supreme Court judgement affirming constitutional rights of local governments.‘
The President emphasised that the onus was on local council leaders to ensure that the broad spectrum of Nigerians living at that level were satisfied that they were benefitting from people-oriented service delivery.
He said, “The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us. This country belongs to all of us.
“By virtue of this judgement, our people – especially the poor – will be able to hold their local leaders to account for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses.”
The President noted that Thursday’s judgement stands as “A resounding affirmation that we can use legitimate means of redress to restructure our country and restructure our economy to make Nigeria a better place to live in and a fairer society for all of our people.”
He said the provision of some essential amenities and public goods, such as the construction and maintenance of certain roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has tottered owing to the emasculation of the local governments.
Therefore, he affirmed that the decision of the Supreme Court to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, is of historic significance and further reinforces the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.
The NLC and NULGE similarly commended the Supreme Court’s ruling on the LG autonomy.
The NLC President, Joe Ajaero, in a statement, described the verdict wresting the councils from the control of state governors as courageous.
The statement read, “For years, we watched with dismay and discontent the remorseless and mindless erosion of the powers of the local governments and had embarked on a series of national protests as workers.
“We also note the effort made by the (Muhammadu) Buhari administration to prise off the stranglehold of governors on local governments. We must also mention the commendable role on this matter by the 9th Assembly.
“This statement will not be complete without paying tribute to the Tinubu government for its presence of mind to institute this action at the Supreme Court. We specifically commend the President and the Attorney-General of the Federation.”
Speaking further, Ajaero argued that true freedom for the local governments must come from those who govern them.
“Should SIECS (State Independent Electoral Commission) be allowed to conduct elections or should INEC take over (even as they are over-burdened and are not exactly the best example)? Should there be a regulatory agency or commission with oversight over SIECs? We will find the devil in the details through a stakeholder conversation,” he added.
In a statement, the National President of NULGE, Hakeem Ambali, said the masses would be better for it, surmising that LG autonomy would reduce the nation’s problem by at least 50 per cent.
“It will reduce the infrastructural gap, and improve community security, and food security. LG will return us to good years of functional and well-run primary education systems and health centres.
“We also want to warn the political class that the local level. We don’t expect to see looting of resources at that level. There must be transparency and accountability at the local government level.’’
A former Chairman of the Ijebu East Local Government Area of Ogun State, Mr Wale Adedayo, hailed President Tinubu over the Supreme Court judgement.
Ex-chairman lauds Tinubu
Adedayo was impeached after alleging that Governor Dapo Abiodun diverted over N10.8bn meant for the 20 local governments in the state.
He had claimed that the 10 per cent of the state’s internally Generated Revenue, which the constitution also stipulated should go to the local government, had not been given to the councils since Abiodun got into office.
He was charged before an Abeokuta Magistrate Court for over the allegations against the governor.
The state government, however, denied the allegations, describing them as baseless and spurious, stating that the Abiodun administration had been augmenting the council funds.
Adedayo observed that the court order would reinforce the belief that the Tinubu-led administration was ready to deepen democracy.
The ex-council boss said, “For me, the current federal administration headed by President Bola Ahmed Tinubu appears ready to deepen the practice of democracy in Nigeria.
“Besides, it appears also that he is feeling the pain of our people at the grassroots and he wants them to have a feeling of good governance.
“The summary of my letter to former Ogun State Governor, Chief Olusegun Osoba, is what the Supreme Court just ruled on. But I was charged in court.
“My criminal trial initiated by Ogun State Governor, Prince Dapo Abiodun, continues tomorrow (today) at the Abeokuta Chief Magistrate Court, Isabo.’’
Speaking further, he noted that Nigeria might never develop without an effective LGA system.
“Once these funds go directly to each local government, you’ll be amazed at the number of quality people vying for positions at the local government level,” he submitted.
The Niger State NULGE Chairman who doubles as the state NLC Chairman, Idrees Lafene, said, “We welcome the judgement, we are happy. This is what we have been fighting for, we welcome it.’’
The Niger State governor’s Special Adviser on Political Strategy, Nma Kolo said the government was still studying the judgement.
In a related development, the Supreme Court judgment is expected to stop the allocations to local governments and local council development areas being run by caretaker committees appointed by the governors.
While the LGAs in Rivers are managed by caretaker committees those in Ondo and Enugu states are headed by senior career officers.
In Osun State, 30 local government areas, 32 LCDAs, six Area councils and one administrative Office are run by caretaker committees appointed by Governor Ademola Adeleke.
Findings indicate that LGAs in Benue, Anambra, Akwa Ibom, Plateau and Kwara states are under the administration of caretaker committees appointed by their governors.
In Enugu State, career officers with the designation of higher personnel managers, are in charge of the councils’ administration.
Checks show that Lagos and Osun top the list of states with LCDAs which were created by the state governors as part of the local government structures.
In Osun, besides the 30 LGA and the Ife East Area Office recognised by the constitution, the state also has 32 LCDAs, six area councils and one administrative office created by the Rauf Aregbesola administration.
Ekiti State has 22 LCDAs, while Ebonyi has 66 Development Centres, equivalent to LCDAs.
Morrison Quakers, SAN, said the constitution only recognised the 774 LGAs in the country.
He said, “We have 774 local governments constitutionally recognised, but recall that the Supreme Court had made a pronouncement sometime back when the then President withheld funds that were meant for LGs. So, that decision is still in place.
“But what the Supreme Court has now said is that the money that is meant for the local governments cannot even be given to or be spent by caretaker committees. So, that now laid this issue to rest.”
On his part, Ifedayo Adedipe, SAN, affirmed that only the recognised 774 local governments would receive money from the federation account.
He added that governors who wished to keep the LCDAs in their states must devise a means to sustain them.
Atiku backs judgment
Former Vice President Atiku Abubakar welcomed the Supreme Court’s judgement affirming fiscal autonomy for local government councils across Nigeria. In a statement released on Thursday via X, Atiku described the ruling as “A win for the people of Nigeria” and a step in the right direction.
He criticised the earlier arrangement, stating that it was borne out of “politics of hasty compromise.”
The Labour Party also commended the judgement of the Supreme Court.The party said that while the resolution of the crisis was late, it was better than never having such an end to the long due crisis where state governors take over funds disbursed for local government administration, from the federal coffer.
A statement by LP National Publicity Secretary, Obiorah Ifoh, read, “We at the Labour Party welcomed the Supreme Court decision granting financial autonomy to Local Government Councils in the 36 States of the federation including the Federal Capital Territory.
“This decision was long in coming but like the saying goes, it is better late than never.
“It has put to rest the debate as to whether or not local government areas that are the closest level of government to the ordinary people deserve to enjoy some form of autonomy to address challenges facing the masses within their jurisdiction.
“We can now safely say local government areas now have greater freedom to initiate and complete projects which will reduce suffering at the grass roots.”
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