LOCAL GOVERNMENT AUTONOMY: NIGERIANS REACT TO SUPREME COURT JUDGEMENT
After a period of back and forth between the Federal
Government and state governors on the issue of Local Government autonomy, the
Supreme Court ruled that it is unconstitutional for governors to withhold funds
earmarked for local government councils, paving the way for autonomy and direct
funding for local governments.
The seven-man panel, in the judgment delivered by Justice
Emmanuel Agim, declared that the 774 local government councils in the country
should manage their funds themselves.
The apex court held that the power of the government is
portioned into three arms of government, the federal, the state and the local
government.
The court further declared that a state government has no
power to appoint a caretaker committee and a local government council is only
recognisable with a democratically elected government.
“A democratically elected local government is sacrosanct and
non-negotiable,” the court said.
The judgment held that the use of a caretaker committee amounts to the state government taking control of the local government and is in violation of the 1999 Constitution.
The court ruled that state governments are perpetuating a
dangerous trend by refusing to allow democratically elected local government
councils to function, instead appointing their loyalists who can only be
removed by them.
The court stated that it is the local government that should
receive and manage funds meant for local government.
Justice Agim declared, “I hold that the state’s retention of
the 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 Local Governments
allocations to the Local Governments directly or pay them through the states.
“In this case, since paying them through states has not
worked, justice of this case demands that LG allocations from the federation
account should henceforth be paid directly to the Local Governments.”
The judgment also held that the local government council
funds must be paid to only democratically elected local government councils
stating that “anything other than this will be taken as a gross misconduct.”
The declaration implies that the state government has no
power or control to keep the local government council money or fund.
“An order of injunction restraining the defendants by
themselves, agents or privies from spending local government allocation. A
declaration that no state government should be paid any money meant for the
local government. An immediate compliance to this judgement,” the apex court
declared.
Justice Agim dismissed the objections filed by state
governors.
Reacting to the judgement, President Bola Tinubu applauded the Supreme Court judgment affirming the constitutional rights of local governments, emphasizing its critical role in advancing effective governance at the grassroots level.
He commended the Supreme Court for upholding the constitutional rights of local governments, particularly regarding financial autonomy.
He further described the decision as historic and a significant step towards strengthening Nigeria’s federal structure for national development.
In a statement released on Thursday, Tinubu highlighted the importance of the judgment, describing it as a reaffirmation of the Constitution.
The statement was signed by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale.
He emphasised that the onus is now on local council leaders to deliver people-oriented services, ensuring that Nigerians at the grassroots feel the impact of governance.
He also expressed confidence that the judgment would allow local officials elected by the people to control local resources transparently and effectively and that the provision of essential amenities and public goods had hitherto been hampered due to the weakening of local governments.
Former Vice President Atiku Abubakar in his own reaction, welcomed the
Supreme Court’s judgment affirming fiscal autonomy for local government
councils across Nigeria.
In a statement released on Thursday via X, Atiku described
the ruling as “a win for the people of Nigeria” and a step in the right
direction.
The Supreme Court’s decision overturns the previous practice
of consolidating local council revenues into state government accounts.
Atiku criticised the earlier arrangement, stating that it
was borne out of politics of hasty compromise.
Expressing his support for the ruling, Atiku said, “I align
with the decision of the Supreme Court that the structure of the Nigerian
government is portioned in three layers, and of these, the local governments
should be centres of development.”
The former Vice President went further, advocating for an
expansion of fiscal autonomy beyond Federation Account allocations.
“I also share the belief that fiscal autonomy to the local
governments should not be limited to revenues from the Federation Accounts, but
indeed, should apply to Internally Generated Revenue from the respective local
government authorities,” he stated.
Atiku highlighted concerns about state governments,
particularly in urban areas, interfering with local councils’ revenue
generation.
He wrote, “Many of our states, especially those in the
ultra-urban areas with high-density economic activities, have become notorious
in muscling local councils from generating revenue on items that border on
motor parks, outdoor advertising, rents and many more.”
Atiku further praised the Supreme Court’s role, saying, “The
verdict of the court is in tandem with the core functions of the Supreme Court
as an arbitration court between and among governments.”
The former Vice President noted that the decision by the
Federal Government to consolidate disbursements of local councils’ revenues
into the state government accounts was borne out of politics of hasty
compromise.
“I align with the decision of the Supreme Court that the
structure of the Nigerian government is portioned in three layers, and of
these, the local governments should be centres of development,” Atiku said in
the statement.
He however said local governments, especially those in the
urban areas should also be granted autonomy to generate and manage revenues
from areas that are constitutionally in their domain.
The Socio-Economic Rights and Accountability Project on its part called on the 36 state governors and the Minister of the Federal Capital
Territory, Nyesom Wike, to “immediately account for and return the local
government funds which they have collected over the years.”
SERAP’s appeal came in the wake of the Supreme Court ruling that
declared the practice of state governors and the FCT minister withholding and
utilising funds intended for local governments unconstitutional.
In a statement signed by SERAP deputy director, Kolawole
Oluwadare, the organisation said, “We applaud the Supreme Court for this groundbreaking
decision which will end the persistent alleged misappropriation by several of
trillions of FAAC allocations or public funds meant for local governments.
“Following the Supreme Court judgment, there is now a clear
legal precedent to hold governors and FCT minister to account for how they have
spent the local government funds collected by them.”
Oluwadare added, “Implicit in the Supreme Court judgment is
the requirement for the governors and FCT minister to immediately account for
and return the funds meant for local governments but retained and used or
allegedly misused by them.”
“Accounting for and returning the LGA funds collected would
build trust in democratic institutions and strengthen the rule of law.”
“If the governors and FCT minister fail to account for and
return the funds meant for local governments in their states and FCT within 7
days, SERAP shall consider appropriate legal actions to compel the governors
and FCT minister to comply with our requests in the public interest.”
In another vein, former Governor of Delta State, James Ibori, has said that the Supreme Court judgment that granted full autonomy to local governments dealt “a severe setback on the principles of federalism.”
Ibori, in a post on X shortly after the judgment, expressed
his disagreement with the verdict, referencing constitutional provisions to
substantiate his claim that the decision undermines the foundations of
federalism.
Comrade Bamidele, a member of the National Union of Local
Government Employees (NULGE) described the judgement as a victory for the Local
Government system. He said the councils had been strangulated by the state
governments over the years. With this development, meaningful development can
be assured at the grassroots.
Since inception in May 2023, this is about the best news
that gladdens the heart of Nigerians.
With this, President Tinubu has scored a first.
It is hoped that implementation of the Supreme Court
judgement will be immediate and to the letter.
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