In a landmark ruling, the Supreme Court, yesterday, described as an act of gross misconduct, the payment of allocations to local governments through the states and immediately ordered the stoppage.
The apex court held that Section 162 (4&5) which stipulated a joint account for state and local governments had been defeated and being exploited by the various state governments hence.
It subsequently condemned the practice of dissolving local governments by governors as well as the running of the third tier of government through caretaker committees.
The apex court made the order, yesterday, while delivering judgement in the suit filed by the federal government seeking to pursue autonomy of the local governments.
President Bola Tinubu, who welcomed the judgment, described the Supreme Court judgment on the rights of the local government as historic, saying it would enhance Nigeria's true federal fabric on development.
He said the judgement affirmed the spirit, intent, and purpose of the 1999 Constitution of the Federal Republic of Nigeria on the statutory rights of all the 774 local government councils.
The president, in a release by his Media Adviser, Ajuri Ngelale, stated that a fundamental challenge to the nation's advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
He, however, said through the judgment, "our people - especially the poor - will be able to hold their local leaders to account for their actions and inactions."
Also, reacting among other prominent Nigerians, groups and institutions, former Vice-President Atiku Abubakar has described the judgement as a win for the people.
However, a former Delta State Governor, James Ibori has condemned the judgement describing it as an assault on true federalism and declaring as utter madness to directly pay LGs
The President Bola Tinubu-led federal government had dragged the 36 state governments to the apex court to resolve dispute surrounding the financial autonomy of local government councils.
In the suit filed in May by the Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi, SAN, the federal government had accused the state governments of running aground the third-tier of government.
According to the federal government, the states, by keeping funds duly allocated to the local governments, have starved them of needed funds for developing the grassroots and by extension responsible for the high rate of criminalities and insecurity in the country.
In the suit marked SC/CV/343/2024, the AGF prayed the apex court for an order prohibiting state governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government executives.
Fagbemi in the originating summons, also prayed the apex court for an order permitting the funds standing in the credits of local governments to be directly channeled to them from the Federation Account in line with the provisions of the Constitution as against the alleged unlawful joint accounts created by governors.
In their individual responses, the 36 states through their attorneys-general urged the court to dismiss the suit, claiming that there was no dispute between them and the federal government that would warrant the intervention of the apex court.
They had also anchored their arguments on Section 162 of the constitution that provides for a joint account for the state and local government; wherein funds accrued to a state and its local governments from the Federation Account are paid into.
They therefore asked the court to dismiss the suit for lacking merit, adding that the plaintiff ought to have filed such suit at the federal high court and not the apex court.
Delivering ruling, a seven-member panel of the apex court led by Justice Mohammed Garba, disagreed with the states, and held that the case of the plaintiff has merit.
In the lead judgement delivered by Justice Emmanuel Agim, the apex court pointed out that Nigeria operates a three-tier system of government where no one tier is subject to the order.
Justice Agim observed that for the last two decades, the states have been retaining funds due to the local governments and disbursing same at their whims and caprices, contrary to the provisions of the Constitution.
The apex court berated the governors for running the LGs as if they were their stooges, adding that the local government was gradually going into extinction by the manner through which it was often dissolved and run by unelected officials.
The apex court further faulted the arbitrary and unilateral manner in which the governors disbursed and managed funds belonging to the third-tier of government.
Not also spared by the apex court were the various state houses of assemblies accused of supporting the governors by enacting laws that put LGs at the mercies of the governors.
It was the position of the Supreme Court, therefore, that the retaining of funds belonging to the LGs had brought unnecessary hardship on the people in the various local government areas.
Hence, the need to ensure constitutional provisions of running the LGs through democratically elected officials as well as ensuring that funds belonging to the LGs were not tampered with by the states.
Agim recalled that before 1999 funds belonging to the LGs were directly paid to them, adding that it was due to convenience that the issue of joint state and local government account came by.
According to him, the state was to collect on its behalf and transfer without tampering/managing/administering the funds which have become the order of the day.
He however concluded that although Section 162 of the Constitution directed the payment of their monthly allocations to a joint account, the aim of that law has been defeated owing to the retaining of the funds by the states and used as they liked.
According to Agim, by laying claim to Section 162 (4&5), the governors were using the Constitution to perpetrate unconstitutionality, adding the Constitution should not be applied in a manner that supported its destruction.
He faulted the narrow interpretation of Section 162(4) which stipulates that funds of the state and the LGs "shall" be paid into a joint state and local government account, stressing that the governors were using it negatively.
Agim explained that the provisions of a joint account did not permit the state to manage funds on behalf of the LGs but merely to receive and transfer accordingly.
While stating that where the narrow interpretation of the section of the Constitution would result to injustice or work against the intended meaning of the said section of the Constitution, the Supreme Court shall employ an approach that would meet the purpose of the Constitution.
"There is no doubt that the word "shall" will mean that the federal government will pay into the joint state account," Agim said.
"But, it has not worked," he added.
Thus, to prevent the governors from further exploiting the said law, the apex court held that it was the responsibility of the apex court to make a law that would serve the interest of the people and the country in general.
Agim held that, "Since paying to the LGs through the state has not worked, the money should henceforth be paid to the LGs directly."
On the issue of appointing caretaker committees to take over governance at the local government level, the apex court reiterated its previous judgements wherein it declared such as illegal, unlawful, null and void.
It held that state houses of assemblies lacked powers to make laws empowering governors to appoint caretaker committees, declaring further that any governor who dissolved any democratically elected local government greatly breached the Constitution and committed a gross misconduct.
He subsequently granted the reliefs sought by the federal government, which included an order of the apex court stopping governors from constituting caretaker committees to run the affairs of local governments as against the constitutionally recognised and guaranteed democratic system.
In addition, the apex court described as an act of gross misconduct the dissolution of democratically elected local governments and their replacement with caretaker committees.
The apex court also made an order of injunction restraining the governors, their agents and privies from receiving, spending or tampering with funds released from the Federation Account for the benefits of local governments when no democratically elected local government system is put in place in the states.
Tinubu: Verdict Historic, Will Enhance Nigeria's True Federal Fabric for Devt
President Bola Tinubu, while welcoming the judgement he described as historic, said it would enhance Nigeria's true federal fabric on development.
In a release by his Media Adviser, Ajuri Ngelale, stated that a fundamental challenge to the nation's advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
He emphasised that the onus was on local council leaders to ensure that the broad spectrum of Nigerians living at that level are satisfied that they are benefitting from people-oriented service delivery.
"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 judgement, 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.
"My administration instituted this suit because of our unwavering belief that our people must have relief and today's judgement will ensure that it will be only those local officials elected by the people that will control the resources of the people.
"This judgement 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 said.
Tinubu noted that the provision of some essential amenities and public goods, such as the construction and maintenance of certain roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has tottered owing to the emasculation of local governments.
He affirmed that the decision of the Supreme Court to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, was of historic significance and further reinforced the effort to enhance Nigeria's true federal fabric for the development of the entire nation.
The President commended Fagbemi for his diligence and patriotic effort on this important assignment.
He stated that his administration remained committed to protecting the principles of the charter governing citizens, institutions of government, arms, and tiers of government in furtherance of building an efficient and performance-driven governance system that works for every Nigerian.
Atiku: It's a Win for the People
Former Vice-President Atiku Abubakar, has described the judge of the Supreme Court granting full financial autonomy to the 774 Local Governments in Nigeria as a win for the people.
The presidential candidate of the PDP in the 2023 general election, in a statement personally signed, said, "The judgment of the Supreme Court earlier today affirming fiscal autonomy to local government councils in the country is a win for the people of Nigeria.
"The court's ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country.
"The decision by the federal government to consolidate disbursements of local councils' revenues into the state government accounts was a decision that 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.
"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.
"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.
"The verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments," he stated.
Akpabio, Abbas, Fagbemi, Soludo Hail Judgement
Senate President, Senator Godswill Akpabio, has advised the 36 governors to respect the Supreme Court judgement that granted financial autonomy to all the 774 local government councils in the country.
At the same time, the Speaker of the House of Representatives, Hon Tajudeen Abbas, has described the judgement as an impossibility that has become a reality.
Fielding questions from journalists after meeting with President Bola Tinubu at the State House, Abuja, Akpabio said, "Recall that the request was placed before the courts by the AGF because the federal government through President Bola Tinubu feels strongly about separation of powers and the need for autonomy of all arms of governments.
"And so for us in the legislature, the Supreme Court has spoken and we have no option than to abide by the Supreme Court ruling.
"So, I will just call on all states of the federation to respect what the Supreme Court has done and then we will go back to the legislature and see where we can dot the i's and cross the t's to ensure the full implementation.
"Because you know the words of the Supreme Court are like the words of the king, they cannot go down to the ground without implementation."
Abbas, who described the judgement as an impossibility that has become a reality, said, "The members have been very happy because history has been made, this is an issue that has been before the parliament for the past twenty years.
"All the constitutional amendments that were so far carried by the National Assembly, one aspect of it has always been local government autonomy; how to make the LG to work independently.
"Today, that impossibility became a reality, everyone is happy and we are looking forward to LG that will work functionally and that will be able to work on there own and extend goodwill to their own people undisturbed by the excesses by the state Governors."
On his part, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi said, "Naturally, one will be happy, should be happy, Nigerians are happy about it.
"I call it local government emancipation judgement because it has really emancipated the local government from the shackles of the past and I hope that local government officials will look at it as an opportunity to develop their various local governments."
On how to ensure compliance to the part of the judgement that requires state governments to conduct elections for local government areas, the AGF said: "The ball is in the court of the governors, let us see what they will come out with.
"But the judgement is clear as to what they should do, the judgement is clear as to what consequences will be attached to failure or refusal to follow the judgement of the Supreme Court, which takes immediate effect."
Governor Charles Soludo of Anambra State welcomed the Supreme Court's judgement granting financial autonomy to local governments, describing it as a great decision that aligns with his administration's commitment to democracy and the rule of law.
Soludo, who spoke to journalists at the State House, Abuja, after meeting with President Tinubu Tinubu, stressed the need for resources to reach the grassroots and promote accountability and transparency in public resource management.
"That's great. I mean, the Supreme Court is supreme, it's the final authority and am a democrat. I believe in the rule of law and once the Supreme Court has spoken, it has spoken and I understand the Governors Forum is meeting to review this.
"I haven't seen the document myself. I've been extremely, very busy all through the day, but I've seen snippets of it. But at a fundamental level, yes, we need resources to get down to the real grassroot and we need the people's money to work for them at all levels, whether at the federal or the state and the local government.
"We need to promote accountability. We need to promote transparency in the utilization of public resources at all levels, to be able to lift the burden off the common man."
Ibori: It's an Assault on True Federalism
A former governor of Delta State, James Ibori, has differed on the implications of the Supreme Court verdict on local government autonomy, saying the development has only dealt a severe setback on the principles of federalism.
Ibori, who said the apex court should have addressed the alleged fiddling with the council funds by some governors, which he also admitted was wrong, however, described the decision that allocations should be sent directly to the local governments as "utter madness".
Citing section 162(3) of the 1999 Constitution (as amended), Ibori said, "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".
According to him, Sections 6 provided further clarity on the subject matter.
"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," he stated.
Insisting the ruling was an assault on true federalism, he said, "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."
Noting that the implications of the ruling were far-reaching, he identified some of the issues that readily come to mind.
"1. Constitutional Interpretation: The Supreme Court's ruling appears to contradict the explicit provisions of Section 162 of the 1999 Constitution. This raises questions about judicial interpretation and whether the court has overstepped its bounds in reinterpreting clear constitutional language.
"2. Balance of Power: The ruling potentially shifts the balance of power between the federal government and states. By allowing federal intervention in local government finances, it arguably centralises more power at the federal level, contrary to the principles of federalism.
"3. State Autonomy: This decision could be seen as an erosion of state autonomy. States are meant to have significant control over their internal affairs, including the administration of local governments, in a federal system.
"4. Financial Independence: The ruling may impact the financial independence of states and local governments. If the federal government can directly intervene in local government finances, it could potentially use this as a tool for political leverage.
"5. Precedent Setting: This decision could set a precedent for further federal interventions in areas traditionally reserved for state governance, potentially leading to a more centralised system of government over time."
He, however, admitted that "local governments must be 'democratically elected' goes without saying. Yes, I agree, that's the position of the constitution but withholding their allocation is not the way to go. It's wrong.
"In the coming days, we will begin to fully understand the implications of the Supreme Court decision. An assault on the constitution is not the answer to fiddling with the Joint LG Account.
"If the ruling is saying governors cannot temper, touch, fiddle with the Joint Accounts, that's fine because they shouldn't be doing that in the first place. But asking the federal government to pay local governments' allocations to the account of the local government directly is utter madness.
"Like the Hon. Justice Oputa JSC of blessed memory once said in describing the Supreme Court, 'We are not final because we are infallible, but we are infallible only because we are final'.
"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."
CNPP
The Conference of Nigeria Political Parties (CNPP) has commended the Supreme Court of Nigeria for its landmark judgement barring governors from withholding funds meant for local government administrations.
In a statement commending the apex court judgement, Comrade James Ezema Deputy National Publicity Secretary of the CNPP, stated: "This ruling is a resounding victory for democracy, national development, and the long-suffering people of Nigeria."
Ezema noted that for far too long, governors have usurped the powers and resources of local governments, stifling grassroots development and perpetuating poverty.
"This judgement marks a new dawn for local government autonomy and a significant blow to the impunity and recklessness of state governors in the last two decades," he said.
Labour Party
The Labour Party has commended the Supreme Court judgement that granted full financial autonomy to the local government areas in the country.
In a statement by the National Publicity Secretary of the party, Obiora Ifoh, said, "We at the Labour Party (LP) welcome the Supreme Court decision granting financial autonomy to Local Government Councils in the 36 States of the federation including the Federal Capital Territory.
"This decision was long in coming but like a saying goes, it is better late than never."
According to the Labour party, "It has put to rest the debate as to whether or not local government areas that are the closest level of government to the ordinary people deserve to enjoy some form of autonomy to address challenges facing the masses within their jurisdiction.
"We can now safely say local government areas now have greater freedom to initiate and complete projects which will reduce suffering at the grass roots."
It's victory for All, Say Arewa Think Tank
A northern group, Arewa Think Tank (ATT) has said the financial autonomy granted the 774 local government areas in the country by the Supreme Court was a victory for all Nigerians.
The group noted that the autonomy would bring rapid development to the people at the grassroots, adding that it would also ensure adequate security in the areas.
In a statement by the Chief Convener of Arewa Think Tank, Muhammad Alhaji Yakubu, the group said all the governors should accept the court judgement in good faith since it is for the benefit of the people.
"We noted with delight that President Bola Ahmed Tinubu administration has scored yet another achievement less than two years in office as far as this local government autonomy is concerned because it was long overdue and previous administrations failed to exhibit political Will to achieve it," he said.
SERAP
The Socio-Economic Rights and Accountability Project has called on the 36 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 position came in the wake of a Supreme Court ruling that declared the practice by 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."
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National Councillors' Forum
The National Councilors' Forum of Nigeria, has described the Supreme Court's judgment asserting the financial autonomy of local governments in the country as one of the greatest days in the history of the country that would go a long way to cement the nation's federal and provide dividends of democracy to teeming Nigerians.
Addressing a press conference in Abuja, the Forum led by its President, Hon. Yusuf Shuaibu Baba, said the judgment as shown that, "It is clear that the constitution of Nigeria recognises federal, states and local governments as three tiers of government and that the three recognised tiers of government draw funds for their operation and functioning from the federation account created by the constitution.
"It is also clear that in the provisions of the constitution, there must be a democratically elected local government system and that the constitution has not made provisions for any other systems of governance at the local government level other than democratically elected local government system."
Baba, however, noted that, "In the face of the clear provisions of the constitution, some state governments refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state."
NLC, NULGE
The Nigeria Labour Congress (NLC) and the National Union of Local Government Employees (NULGE), have commended the Supreme Court for restoring power to the Local Governments.
In a statement signed by NLC President, Joe Ajaero said the Supreme Court through the landmark judgment has not only restored democracy but possibly hope in the democracy.
NLC said: "We at the Nigeria Labour Congress wish to commend the Supreme Court of Nigeria for restoring power to the Local Governments.
"It's epochal pronouncement on Thursday, July 11, 2024 directing that financial allocations be made directly to Local Governments as well as divesting state governments of 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 the democracy."
On its part, the the National President of NULGE, Ambali Olatunji, said local government autonomy would reduce the problem of Nigerian by at least 50 per cent.
He also said it would reduce the infrastructural gap, improve community security, and food security.
"We appeal to the governors to see the judgment as a necessity towards national growth and development."
The Niger State branch of NULGE, through its chairman, Comrade Abdulkhareen Lafene, said, "We welcome the judgement, we are happy. This (Judgement) is what we have been fighting for we welcome it."
Senate Minority Caucus, Gbenga Daniel
The Senate Minority Caucus and Senator Gbenga Daniel, yesterday, hailed President Bola Tinubu over the Supreme Court landmark judgment on the Local Government Autonomy.
Minority Leader, Senator Abba Moro, speaking on behalf of his colleagues, said the verdict was victory for democracy and Nigerians
Moro said the ruling was a victory for democracy and Nigerians, adding that the court remained the last hope of the common man, and that the ruling would bring rapid development to the grassroots where majority of Nigerians live and transact businesses.
Senator Gbenga Daniel, representing Ogun East Senatorial District, said with the judgement, Tinubu has demonstrated uncommon courage and leadership in a manner that seeks to return Nigeria on a trajectory of growth and development.
"This constitutional resolution is long overdue because the local government administration is the closest to the grassroots and they should have the capacity to impact directly on the lives of the people through the initiation of life-changing programs and projects," he said.
Ajayi Knocks Aiyedatiwa over Appointment of Transition C'ttees for 33 in Ondo LCDAs
Candidate of the PDP for the November governorship election in Ondo State, Agboola Ajayi, has knocked Governor Lucky Aiyedatiwa of Ondo State, over the constitution of the Transition Committees for the 18 local government areas and 33 Local Council Development Areas (LCDAs) in the State.
Addressing journalists at a press conference held at the PDP Secretariat in Akure, Ajayi described the governor's decision as a flagrant disrespect for an Ondo State High Court judgement, which held that the Local Government Creation Law 2023 was unconstitutional, illegal, null and void.
His words: On Thursday, 20th June, 2024, Hon Justice A.O Adebusuoye pronounced the 33 LCDAs created by the Rotimi Akeredolu's administration as inchoate and unlawfully created. But, we are surprised by the latest development by the state government."
The governorship candidate explained that, it was the height of lawlessness and impunity for Aiyedatiwa to appoint Committees for LCDAs that were non-existent in the eyes of the law.
"We aren't trying to over flog issues but we must put the record straight and alert the state so as not to be turned to a laughing stock among committee of states in Nigeria," he said.
Reacting, the Attorney General and Commissioner for Justice in the state, Dr Olukayode Ajulo (SAN) said the appointment of Transition Committees was a lawful exercise of the governor's constitutional powers.
According to him, the committees were intended to ensure seamless transition and continuity of government business in the affected areas.
Benue APC
The All Progressives Congress APC in Benue state has congratulated President Bola Ahmed Tinubu over the Supreme Court judgement that unshackled all 774 local governments areas from the chains of governors in Nigeria.
The party described the judgement as a major step towards the final triumph of the local government system over satanic forces, and the will of the people over anti-democratic forces.
The judgement, according to the State Publicity Secretary APC, Benue State, Daniel Ihomun, has strengthened the confidence of the people in the integrity of the Supreme Court and is dearly welcomed by the party in Benue State.
