Landmark Judgment by Supreme Court Halts Governors' Control Over Local Council Allocations

ABUJA, Nigeria – In a landmark ruling, the Supreme Court of Nigeria has delivered a decisive judgment in the case SC/CV/343/2024, which was filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), against the 36 state governors. This ruling marks a significant shift in the administration and financial autonomy of local government areas (LGAs) in Nigeria.

The Attorney-General had initiated the lawsuit through the respective state attorneys-general, challenging the governors' control over the 774 local councils' allocations. The Supreme Court's judgment effectively halts the governors’ practice of managing the funds allocated to LGAs from the Federal Accounts Allocation Committee.

Breakdown of Allocations

An analysis of the monthly distribution document released by the National Bureau of Statistics reveals that LGAs received N2.6 trillion from the Federal Accounts Allocation Committee between January and December 2023. In the first five months of 2024, the local councils also received N1.42 trillion. However, the ruling affects states without elected local government officials, such as Rivers, Ondo, Osun, and Plateau, where LGAs are managed by caretaker committees.

The Attorney-General's Case

The Attorney-General's case rested on 27 grounds, arguing that the Nigerian constitution recognizes federal, state, and local governments as three distinct tiers of government. The AGF sought a court order for the direct allocation of funds from the federation account to the local governments and an injunction against the unlawful dissolution of local government administrations by state governors.

The state governors opposed the suit, urging the Supreme Court to strike it out as incompetent. They contended that the AGF lacked the standing to file the suit on behalf of the local governments.

Supreme Court's Ruling

In a lead judgment delivered by Justice Emmanuel Agim, the Supreme Court declared that the Nigerian government is divided into three tiers: federal, state, and local governments. The court ruled that state governments do not have the authority to constitute caretaker committees, emphasizing that a local government council must be democratically elected.

"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 caretaker committees violated the 1999 Constitution.

Implications of the Judgment

The Supreme Court further ruled that LGAs should be governed by democratically elected governments. It stated that the state governors' practice of dissolving elected councils and replacing them with caretaker committees was unlawful, unconstitutional, null, and void. The court barred state governors from receiving, retaining, or spending local government allocations, citing a violation of section 162 of the 1999 Constitution.

The judgment mandates that any funds leaving the federation account must be distributed to the three tiers of government. The court emphasized that local governments should receive and manage their allocated funds directly.

Justice Agim declared, "The state's retention of 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 through the states. In this case, since paying through states has not worked, justice demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs."

Reactions to the Judgment

The ruling has been met with widespread acclaim from various stakeholders, including President Bola Tinubu, the Nigeria Labour Congress (NLC), the National Union of Local Government Employees (NULGE), and other organizations.

President Tinubu welcomed the verdict, stating that it affirmed the spirit and purpose of Nigeria’s Constitution regarding the statutory rights of local governments. He emphasized that effective local government administration is crucial for national advancement and that the judgment would empower local councils to provide essential services to the people.

The President 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 judgment, our people – especially the poor – will be able to hold their local leaders to account for their actions and inactions.”

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Praise from Labor Unions

The NLC President, Joe Ajaero, described the judgment as courageous, noting that it would restore the powers of local governments that had been eroded over the years. He acknowledged the efforts of the Buhari administration and the 9th Assembly in addressing the issue of local government autonomy.

Ajaero stated, "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. 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."

The National President of NULGE, Hakeem Ambali, also commended the ruling, asserting that LG autonomy would significantly reduce the nation’s challenges, including infrastructural gaps, community security, and food security. Ambali warned the political class against looting resources at the local level and called for transparency and accountability in local government administration.

Local Government Reactions

Local government leaders have also hailed the judgment. A former Chairman of the Ijebu East Local Government Area of Ogun State, Mr. Wale Adedayo, praised President Tinubu and the Supreme Court for upholding the constitutional rights and financial autonomy of local governments.

The judgment represents a pivotal moment in Nigeria's governance structure, aiming to strengthen the third tier of government and ensure that local councils are empowered to fulfill their roles effectively. By granting financial independence to LGAs, the Supreme Court has paved the way for improved service delivery and accountability at the grassroots level.

Conclusion

The Supreme Court’s landmark judgment marks a new era for local government administration in Nigeria. By affirming the financial autonomy and democratic governance of LGAs, the ruling seeks to enhance local governance and promote development at the grassroots level. The decision has been lauded by various stakeholders, who see it as a step towards a more equitable and efficient distribution of resources across the country. As Nigeria moves forward, the implementation of this judgment will be crucial in ensuring that the benefits of local government autonomy are fully realized for the betterment of all citizens.