Supreme Court Says it’s Illegal For Governors to Hold LG Funds
The Supreme Court in Nigeria has declared that it is unconstitutional for state governors to hold onto funds meant for Local Government administrations.
In its lead judgement read by Justice Emmanuel Agim, the apex court observed that the refusal of the state government on financial autonomy for local governments has gone on for over two decades.
He said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
Justice Agim noted that the 774 local government councils in the country should manage their funds themselves.
He dismissed the preliminary objections of the defendants, state governors.
The apex court consequently directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.
The Verdict
In his judgement, Justice Agim said the AGF has the right to institute the suit and protect the constitution.
The apex court consequently directed that Local Government allocations from the Federation Account should be paid directly to them henceforth, and not to state government coffers.
Justice Agim pointed out that the state governors’ retention of the monies meant for the Local Governments truncates the latter’s activities.
Justice Agim ordered the immediate compliance of the judgement, stating that no state government should be paid monies meant for Local Governments.
