Supreme Court upholds LG autonomy

…Declares Joint Account illegal, orders FG to pay allocations directly LG accounts

…Bars Govs from dissolving democratically elected LG officials

..Tinubu, Atiku, CUPP hail verdict

By Andrew Orolua & Tunde Opalana

The Supreme Court of Nigeria, on Thursday, endorsed and reinforced the autonomy of 774 local governments in the country as it declared state government holding of local government councils’ funds unconstitutional.

The Apex Court ordered the Federal Government to henceforth pay allocations meant for local government councils to each council directly from the federal revenue allocation account.

Before now funds meant for local government councils were paid into the State government/local government joint account which made it almost impossible for the councils to access their funds as state governors controlled it and gave them whatever they felt.

Delivering the lead judgement on a suit filed by Federal Government through Attorney General of Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, against the 36 state governments and Federal Capital Territory Administration, Justice Emmanuel Agim also barred the governors from receiving, tampering or withhold funds meant for the local governments.

The apex court further ordered that the Federation Account Committee must henceforth pay directly all monies standing to the credit of local governments in the country to each of 774 local governments.

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The governors were also barred from henceforth dissolving democratically elected officials of local governments and that doing so would amount to a breach of the 1999 Constitution.

The apex court observed that the refusal of state governments to allow financial autonomy for local governments had gone on for over two decades.

He said local governments had since stopped receiving the money meant for them from the state governors who acted in their stead.

Justice Agim noted that the 774 local government councils in the country should manage their funds themselves.

He dismissed the preliminary objections filed by 36 state governments (state governors) who were the defendants to the suit as lacking in merit.

He said that the Attorney General of Federation has locus standi (legal right) to institute the action to protect the constitution.

Fagbemi, the Federal Government had in the suit sought an order preventing the governors from arbitrarily dissolving democratically-elected councils, an order which the apex court unanimously granted.

Meanwhile, President Bola Tinubu has welcomed the decision of the Supreme Court affirming the spirit, intent and purpose of the 1999 Constitution on the statutory rights of local governments.

Chief Ajuri Ngelale, the President’s spokesman, in a statement on Thursday said, Tinubu noted that a fundamental challenge to the nation’s advancement over the years had been ineffective local government administration.

According to the President, governance at the critical cellular level of socio-political configuration was nearly absent.

Tinubu emphasised that the onus was now 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,” he said.

The President said his administration instituted the suit because of its unwavering belief that Nigerians must have relief and the judgement would ensure that it would be only those local officials elected by the people that would 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,” Tinubu’ said.

He 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, had tottered owing to the emasculation of local governments.

The President affirmed that the decision of the apex court to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, was of historic significance.

He said it further reinforced the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.

Tinubu commended the Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN), for his diligence and patriotic effort on the important assignment.

He assured 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 will work for every Nigerian.

Also, former Vice President of Nigeria, Atiku Abubakar, has lauded Thursday’s monumental judgement by the Supreme Court giving fiscal autonomy to the 774 local government councils in the country.

He described the judgment is a win for the people of Nigeria.

Atiku in a personal statement yesterday in response to the apex court verdict said: “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.”

He submitted that the verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments.

Also reacting, the Coalition of United Political Parties (CUPP) said the Supreme Court judgement which declared holding of local government account by state government as unconstitutional as a victory for Nigerians and the suffering masses in the rural areas.

CUPP said in a statement signed by its National Secretary Peter Ameh that “by this judgment, the suffering masses have been unshackled financially from the shackles of the governors who have be holding them hostage since the 1999 as a result of their warped interpretation of Section 162(6) of the 1999 Constitution as amended.

“With this judgment of the Supreme Court, it is hoped that meaningful development will begin to trickle to, candidate be seen in the rural areas as the inhabitants of all the local governments who hitherto had not have access to their almighty governors will now know who to hold accountable for misappropriated funds accruing to their local government and abuse of office by those in charge of at that level.

“CUPP also hopes that the financial autonomy granted to the local governments by this judgment to be the first step to the devolution of powers shall be accelerated to include fiscal federalism so that every component state in the federation will see the need to think out of the box, go to work, and stop this monthly beggarly allocation to the states and local governments.

“All states have what it takes to survive on its own and become self-sufficient in the generation of resources if the political will is given a priority”.