Our reporter/ The Supreme Court, on Thursday, granted financial autonomy to Local Government Areas and declared that it is unconstitutional for state governors to hold onto funds meant for Local Government (LG) administrations.
In its lead judgement read by Justice Emmanuel Agim, the apex court observed that the state governments’ refusal of financial autonomy for local governments has gone on for over two decades.
Justice Agim said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
He noted that the 774 local government councils in the country should manage their funds themselves.
He dismissed the preliminary objections of the defendants (state governors).
In the last few months, calls for local government autonomy have increased in Nigeria. In May, the Federal Government, through the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds.
Currently, the Federal Government gets 52.68%, and states get 26.72%. In comparison, LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).
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