The Supreme Court of Nigeria, on Thursday, granted financial autonomy to the 774 local government areas across the country, thus freeing them from the stranglehold of the state governors.
It also declared as unconstitutional the appointment of caretaker committees by governors to run the affairs of the third tier of government.
The apex court barred the 36 state governors of the federation from further retaining or utilising funds that are meant for the 774 local government areas.
This was contained in the lead judgment of the court that was delivered by Justice Emmanuel Agim
The judgment was sequel to a suit filed by the Federal Government to secure financial autonomy for the third tier of government.
The Supreme Court had earlier dismissed preliminary objections the state governors filed to challenge the competence of the suit.
The apex court ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to local government areas in their states.
It declared that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.
The Supreme Court ruled that no state House of Assembly has the power to make laws that could, in any way, interfere with monies meant for the local government areas.
The apex court stressed that the law mandated that local government areas must be governed by democratically elected officials.
It ordered that, henceforth, funds meant for the third tier of government must be directly paid to them from the Federation Account.
“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.
It further declared as unconstitutional the appointment of caretaker committees by governors to run the affairs of the third tier of government.
The Supreme Court held and declared that the 36 states are under obligation to ensure democratic governance at the local government areas.
