In a landmark decision, the Supreme Court of Nigeria has granted full financial autonomy to the 774 local governments, effectively curbing the influence of state governors over local council funds. The ruling, delivered by a seven-member panel, declared the practice of appointing caretaker committees by governors as illegal and unconstitutional.
The court's unanimous verdict in case SC/CV/343/2024, filed by Attorney-General of the Federation Lateef Fagbemi, emphasized that funds allocated to local councils should no longer be retained by state governments. The ruling mandates direct allocation of these funds from the federal account to the local governments.
The judgment follows an analysis by the National Bureau of Statistics revealing that local councils received N2.6 trillion in allocations from January to December 2023, and N1.42 trillion in the first five months of 2024. Several states, including Rivers, Ondo, Osun, and Plateau, face potential withholding of allocations due to the use of caretaker committees instead of elected officials.
The Supreme Court criticized the governors' control over local government funds, describing it as a clear violation of the 1999 Constitution. Justice Emmanuel Agim stated, “A democratically elected local government is sacrosanct and non-negotiable,” marking an end to the practice of caretaker appointments.
President Bola Tinubu, the Nigeria Labour Congress, and the National Union of Local Government Employees praised the ruling. Tinubu highlighted the decision's significance in enhancing local governance and holding local leaders accountable. He noted that the judgment aligns with the spirit of the Constitution and aims to improve the delivery of services at the grassroots level.
The ruling is expected to bring substantial changes to local government administration, fostering greater transparency and accountability. It is anticipated to impact the provision of essential amenities and public goods, addressing the longstanding issues in local governance across Nigeria.
