In a landmark judgment, the Supreme Court has ruled that the federal government must pay allocations directly to local government councils from the federation account, bypassing state governments. The court held that states have consistently abused their powers by retaining and using funds meant for local governments.
The seven-member panel of justices, led by Justice Emmanuel Agim, declared that states must ensure democratically elected local government councils, and governors cannot dissolve elected councils or use their powers to appoint caretaker committees.
The court ordered the federal government to withhold allocations to local governments governed by unelected officials appointed by governors. The judgment grants full autonomy to the 774 local governments in Nigeria, allowing them to receive funds directly from the federation account.
Attorney-General of the Federation, Lateef Fagbemi, had filed a suit on behalf of the federal government, requesting the court to authorize direct transfer of funds to local governments, in accordance with the constitution.
This historic decision promotes fiscal autonomy, democratic governance, and grassroots development in Nigeria, and is seen as a significant breakthrough in the country’s decentralization journey.