*Stops Governors From Managing Council Funds
*Rules Allocations Should Be Paid Directly From Federation Account
Reps To FG: Withhold Allocation To Councils Run By Unelected Officials
THE Supreme Court, in a lead judgment on Thursday, July 11, read by Justice Emmanuel Agim, declared that it is unconstitutional for state governors to hold on to funds meant for Local Governments, recalling that state governments’ denial of financial autonomy to local governments has gone on for over two decades.
According to the court, local governments have since stopped receiving the money meant for them from the state governors who act in their stead, noting that the 774 local government councils in the country should manage their funds themselves.
The court had earlier dismissed the preliminary objections of the defendants (state governors) challenging the competence of the suit instituted by the Attorney General of the Federation (AGF) and Minister of Justice, Mr. Lateef Fagbemi (SAN), on behalf of the Federal Government, against the 36 state governors of the federation, on local government autonomy, especially regarding funds from the federation account.
The AGF sought full autonomy and direct fund allocation to the 774 local governments in the country and asked the apex court to invoke Sections 1, 4, 5, 7 and 14 of the constitution to declare that the governors and state houses of Assembly are under obligation to ensure democratically elected systems at the third tier.
The court had earlier dismissed the preliminary objection by the state governors, saying the AGF has the right to institute the suit and protect the constitution.
It, therefore, directed that local government allocation from the Federation Account should be paid directly to them henceforth and barred the 36 governors of the federation from further retaining or utilising funds meant for the 774 local government in the country.
The court held that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to the third tier of governments in their states, saying the “dubious practice,” which has gone on for over two decade, was a clear violation of Section 162 of the 1999 Constitution, as amended.
Justice Agim held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the local governments, as the law mandated that they must be governed by democratically-elected officials.
The court added: “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.”
It further declared unconstitutional the appointment of caretaker or transition committees by governors to run the affairs of the councils, adding that the 36 states are under obligation to ensure democratic governance at the third tier of government.
Only on Wednesday, July 10, the House of Representatives urged the Federal Government to withhold allocation of councils funds to states running transition implementation or caretaker committees.
The House also urged the Revenue Mobilisation, Allocation Fiscal Commission (RMAFC) to create a special account where allocations due to local governments run by unelected officials would be paid and that the money should be withheld until elected representatives are put in place by such state governments.
The resolution followed the adoption of a motion of urgent public importance by Gaza Jonathan (SDP-Nasarawa) and Ademorin Kuye (APC-Lagos) on the floor of the House in Abuja on Tuesday, July 9.
In the motion, titled, ‘Urgent need to address the refusal of state government to uphold democratic principles in the local governments and the financial impropriety of unelected local government officials,’ the sponsors noted that the local government, as envisaged by the constitution, was the most important tier of government.
They stated that the local government is the closest to the people and forms the foundation of both the state and federal governments, saying the dissolution of democratically-elected councils is in direct contravention of Section 7 of the Nigerian Constitution.
“The Supreme Court pronouncements on such matters, states that it is a deliberate affront on democracy.”
The duo noted that the number of states acting with impunity and in utter disregard to the constitution continued to increase, lamenting that not less than 21 state governors were
running local government councils with caretaker committees.
They reckoned that the impunity and disregard to the constitution was a deliberate effort to upstage democracy, frustrate accountability and transparency in the local government and also thwart their development potentials.
Adopting the motion, the House mandated the committees on state and local government affairs and finance
to work with the RMAFC to withhold allocations to local governments run by unelected officials.
The House also urged the AGF to institute legal action against any state that terminates the unexpired tenure of a local government.
