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Supreme Court Grants Financial Independence To Local Governments

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In a landmark ruling, the Supreme Court has declared that state governors’ control over local government funds is unconstitutional. The court’s lead judgment, read by Justice Emmanuel Agim, emphasized that local governments have been denied financial autonomy for over two decades, with governors withholding funds meant for them.

The apex court affirmed that the 774 local government councils should manage their own finances, independent of state governors. Justice Agim dismissed the governors’ objections, upholding the Attorney-General of the Federation’s (AGF) right to seek protection for the constitution.

The Federal Government had sought an order to prevent governors from dissolving democratically elected councils arbitrarily. The Supreme Court’s directive now ensures that local government allocations from the Federation Account will be paid directly to the councils, bypassing state governors.

This ruling marks a significant victory for local government autonomy and financial independence, ending a long-standing dispute between states and local governments.