Supreme Court Grants Financial Autonomy To Local Governments

In a landmark decision, the Supreme Court of Nigeria has granted financial autonomy to local governments across the country. The ruling mandates that funds due to local governments from the Federation Account be paid directly to them, bypassing state governments. This decision aims to ensure greater financial independence and operational efficiency for local government councils, enabling them to address community needs more effectively.

The judgment, delivered by a seven-man panel led by Justice Garba Lawal, follows a suit filed by the Federal Government against the 36 state governors. The suit accused the governors of gross misconduct and abuse of power, particularly in the arbitrary dissolution of democratically elected local government executives and the creation of caretaker committees to run local governments, which the court deemed unconstitutional.

The Attorney-General of the Federation, Lateef Fagbemi, argued for the direct transfer of funds to local governments and for an injunction to prevent state governors from interfering with local government funds unless a democratically elected local government system is in place.