Supreme Court Declares State Governors Cannot Withhold Local Government Funds

The Supreme Court of Nigeria delivered a landmark ruling on Thursday, declaring unconstitutional the practice of state governors withholding funds allocated to local government administrations.

Justice Emmanuel Agim, in a significant judgement, affirmed that this longstanding practice violates the financial autonomy rights of local governments, which have endured for more than two decades.

According to the apex court’s decision, all allocations from the Federation Account must now be directly paid to the 774 local government councils nationwide, bypassing state governors who previously controlled these funds.

Justice Agim dismissed objections raised by state governors, asserting that local governments are entitled to manage their finances independently, without interference.

The case, brought by the Attorney-General of the Federation, Lateef Fagbemi, aimed to protect democratically elected councils from arbitrary dissolution by governors, thereby reinforcing the framework for local governance in Nigeria.

The federal government, represented by Fagbemi, advocated for full autonomy for local governments, seeking relief from the Supreme Court to prevent governors from unlawfully dissolving elected local government leaders and from establishing illegal joint accounts.

In his plea, Fagbemi also requested the Supreme Court to prohibit governors from setting up Caretaker Committees to oversee local government affairs, actions deemed contrary to Nigeria’s constitutional democracy.