- Verdict is reaffirmation of Constitution – Tinubu
- Atiku, Minister, NLC, Ozekhome, others laud verdict, says it’s timely, courageous
- Return LG funds now, SERAP tells governors, Wike
- Judgement stands concept of true federalism on its head – Ibori
Jubilations have greeted the decision of the Supreme Court of Nigeria as it declared on Thursday that it is unconstitutional for state governors to hold funds allocated for local government administrations.
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 LG allocations to the LGs 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 LGs.”
The judgment 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.”
Justice Agim dismissed the objections filed by state governors.
Judgment is reaffirmation of Constitution – Tinubu
In his reaction, President Bola Tinubu lauded the Supreme Court’s judgment affirming the constitutional rights of local governments, emphasizing its critical role in advancing effective governance at the grassroots level.
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 noted that ineffective local government administration has been a significant obstacle to national progress, with governance at the grassroots level nearly non-existent.
“The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us.
“This country belongs to all of us. By virtue of this judgment, our people – especially the poor – will be able to hold their local leaders to account for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses,” Tinubu said
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.
“My administration instituted this suit because of our unwavering belief that our people must have relief and today’s judgment will ensure that it will be only those local officials elected by the people that will control the resources of the people,
“This judgment stands as a resounding affirmation that we can use legitimate means of redress to restructure our country and restructure our economy to make Nigeria a better place to live in and a fairer society for all of our people,” the President stated
Tinubu pointed out that the provision of essential amenities and public goods has been hampered due to the weakening of local governments.
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.
Tinubu also praised the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), for his diligent and patriotic efforts in this critical legal battle.
He reiterated his administration’s commitment to protecting the principles of governance and ensuring a performance-driven system that benefits every Nigerian.
The Attorney General of the Federation, Lateef Fagbemi (SAN), filed a lawsuit on behalf of the Federal Government, seeking to grant full autonomy and direct funding to all 774 local government councils in the country.
The AGF, in the suit predicated on 27 grounds, urged the apex court to issue an order prohibiting state governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders.
The Federal Government further contended that Nigeria as a federation is a creation of the 1999 Constitution with the President as the Head of the Federal Executive arm of the Federation and has sworn to uphold and give effect to the provisions of the Constitution.
The 36 state governments, through their attorneys general, filed a counterclaim, arguing that the Supreme Court lacked the jurisdiction to hear the case.
They claimed that the AGF lacked the locus standi to institute the suit for the local governments.
In Thursday’s ruling, Justice Agim affirmed that the AGF has the legal authority to initiate the lawsuit and uphold the constitution.
Justice Agim said, “I hold that the plaintiff’s request is hereby approved and all the reliefs granted.”
It’s a win for people of Nigeria – Atiku
Former Vice President Atiku Abubakar also 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.
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.”
Minister hails judgement, plans LGs conference
The Minister of Special Duties and Intergovernmental Affairs, Zephaniah Jisalo, has equally expressed his support for the Supreme Court’s decision to grant autonomy to local governments in the country.
Speaking at the opening of a two-day retreat for ministry staff in Abuja on Thursday, Jisalo stated that the autonomy would foster development in local governments.
Jisalo noted that with the autonomy granted to LGs, the staff of the ministry must perform its constitutional responsibilities to better the lives of the citizens.
He said, “I have been informed that the Supreme Court judgment has given the autonomy of local governments in the country. That is to say, the state assembly will also legislate on the activities of local government, including the tenure of a local government administration.
“We are resolute to perform. And we have no excuse as a ministry not to perform. We will ensure that our effort will be translated meaningfully into improvements to the lives of our citizens of our country.”
Jisalo also disclosed that the ministry would organise a conference for local government leaders as well as the traditional rulers before the end of the year.
He said, “It will also help to develop, particularly the administration of the local government system and the chieftaincy affairs. The traditional rulers are under our office. And as such, we are going to have a local government conference in Nigeria. We are also going to have a conference of traditional rulers in Nigeria this year.”
On the retreat, the minister said it would help to strategise and improve the ministry’s performance.
He said, “The retreat is a fundamental moment for us to reflect, to evaluate, and to strategize on how we can improve our performance management system and intergovernmental coordination to improve better services to our Nigerian people. The retreat marks a real commitment to excellence in our service delivery. The outcome will have far-reaching implications on our ministry and the entire nation.”
Supreme Court has restored hope in democracy – NLC
In the same vein, the Nigeria Labour Congress has welcomed the Supreme Court’s judgment affirming fiscal autonomy for local government councils across the country.
In a statement on Thursday, the NLC President, Joe Ajaero, said the apex court’s ruling is a restoration of hope in the country’s democracy and judiciary.
Ajaero asserted that the apex court’s verdict is “both courageous and salubrious” and recalled the “tortuous” journey to the local governments’ freedom.
He said, “It’s an epochal pronouncement on Thursday, July 11, 2024, directing that financial allocations be made directly to Local Governments as well as divesting state governments of the power to remove local government executives is both courageous and salubrious.
“The Supreme Court, through this landmark judgment, has not only restored our democracy but possibly hope in democracy.
“For years we had watched with dismay and discontent the remorseless and mindless erosion of the powers of the local governments and had embarked on a series of national protests as workers.”
Ajaero also commended the 9th National Assembly, the administration of ex-President Muhammadu Buhari, and President Bola Tinubu for their efforts leading to the ruling.
He added, “We also note the effort made by the Buhari Administration to price off the strangle-hold of governors on local governments. We must also mention the commendable role on this matter by the 9th Assembly.
“This statement will not be complete without paying tribute to the Tinubu government for its presence of mind to institute this action at the Supreme Court. We specifically commend the President and the Attorney General of the Federation.”
Ajaero, however, wants the Supreme Court ruling implemented and questions the conduct of local government elections by state electoral commissions.
“Should SIECS be allowed to conduct ‘elections’ or should NEC take over (even as they are over-burdened and are not exactly the best example)? Should there be a regulatory agency or commission with oversight over SIECs? We will find the devil in the details through a stakeholder conversation,” he said.
Ozekhome lauds verdict, says it’s timely, courageous
In his own reaction, a Senior Advocate of Nigeria, Mike Ozekhome, said the Supreme Court judgement is timely and courageous.
He said what the judgement has done is more like interpreting section 162 of the Constitution, which provides for a joint State-Local Government Account.
“In which case, money is normally paid to state governors’ accounts and then for them to disburse to the local governments for them to share. But what has been happening is that, as I noted in 2020,over three years ago, the state governors, have been behaving like ”bandits”, waylaying local governments funds along the way and thus impoverishing them leaving them with nothing to work, just a little for salary, and nothing to actually work for the people whom they represent.
“I agree totally with the judgement of the Supreme Court to grant full financial autonomy so that money is released and paid directly to the 774 local government councils which constitute the third-tier of government, to develop their places because the LGAs are grass rooted and nearest to the people. Rather than allow overbearing state governors to throw their weight around and muzzle the local governments and seize their purse, they will now allow LGs to breathe some air of freedom.”
According to the erudite lawyer, “If you take a look at our situation, Nigeria is operating a very lopsided federation, more like a unitary system of government. Where the Federal Government is supposed to be a small government, it is controlling 67 items on the exclusive legislative list. That is why the Federal Government gets the lion share of the federation account, the lion share of the money that comes to the federation account to the tune of 52.68%. The states get 26.72% while the entire 774 local government councils in Nigeria get just 20.60% of the monthly allocation by the Revenue Mobilization Allocation and Fiscal Commission.”
Ozekhome questioned what the Federal Government does with almost 53% of the national income.
Return LG funds now, SERAP tells governors, Wike
Consequently, the Socio-Economic Rights and Accountability Project has urged Nigeria’s 36 governors – including Governor Dapo Abiodun of Ogun State, Governor Sheriff Oborevwori (Delta), Governor Chukwuma Soludo (Anambra) and the Minister of the Federal Capital Territory, Abuja, Newsom Wike “to immediately account for and return the local government funds which they have collected over the years.”
In a statement signed on Thursday 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.”
SERAP said, “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.”
Judgement assault on true federalism – Ibori
However, a former governor of Delta State, James Ibori, has described the ruling of the Supreme Court on local government autonomy as “assault on true federalism”.
Reacting, Ibori via his social media page claimed that the Supreme Court misinterpreted the law and has granted the Federal Government even more power.
He further listed the implications of the ruling as constitutional misinterpretation, imbalance of power, erosion of state autonomy, potential use of financial independence for political leverage, and precedent for further federal interventions.
He said, “The Supreme Court has dealt a severe setback on the principle of federalism as defined by section 162(3) of the 1999 Constitution (as amended). The section expressly provides thus: “Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms and in such manner as may be prescribed by the National Assembly.”
“Sections 6 provide further clarity on the subject matter. (6) Each State shall maintain a special account to be called ‘State Joint Local Government Account’ into which shall be paid all allocations to the Local Government Councils of the State from the Federation Account and from the Government of the State.
“The court’s ruling on the matter is an assault on true federalism. The Federal Government has no right to interfere with the administration of Local Governments under any guise whatsoever. There are only two tiers of government in a federal system of government.
“I’m opposed to fiddling with the allocations to the Joint LG Accounts at the state level but that in itself does not call for this death knell to the clear provisions of section 162 of the constitution.”
“It is my sincere hope that the judgement delivered today will be reviewed at the earliest time possible because it clearly stands the concept of federalism on its head,” Ibori added.