The court also declared the appointment of caretaker committees by governors to manage the affairs of the LGAs unconstitutional.
By Musa Ibrahim
The Supreme Court has prohibited the 36 state governors from retaining or using funds designated for the 774 Local Government Areas (LGAs) in the country.
The highest court ruled that it is illegal and unconstitutional for governors to continue receiving and withholding funds allocated to LGAs in their states.
The court emphasized that this “dubious practice,” which has persisted for over two decades, clearly violates Section 162 of the 1999 Constitution, as amended.
In the lead judgment delivered by Justice Emmanuel Agim, the Supreme Court stated that no state House of Assembly has the authority to enact laws that interfere with funds intended for the LGAs.
“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.
The court also declared the appointment of caretaker committees by governors to manage the affairs of the LGAs unconstitutional.
It ruled that the 36 states are obligated to ensure democratic governance at the third tier of government.
This judgment came in response to a suit filed by the Federal Government seeking financial autonomy for the LGAs.
Previously, the court had dismissed preliminary objections raised by the state governors challenging the suit’s competence.
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