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Home News

Landmark Ruling: Governors barred from touching LGA funds

by Mathew
11/07/2024
in News
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LG autonomy: S’Court gives state govs 7 days to defend suit
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ABUJA (Sundiata Post) – The Supreme Court has barred the 36 governors of the federation from further retaining or utilising funds meant for the 774 Local Government Areas (LGAs) in the country.

In a lead judgement delivered by Justice Emmanuel Agim, the apex court ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.

The court held that the “dubious practice”, which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.

Additionally, the court unanimously held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.

Justice Agim stressed that the law mandated that LGAs must be governed by democratically elected officials. The Supreme Court ordered that, henceforth, funds meant for LGAs must be paid to them directly from the federation account.

“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states,” Justice Agim stated.

“In this case, since paying them through states has not worked, justice in this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” the apex court ruled.

The court also declared unconstitutional the appointment of caretaker committees by governors to run the affairs of LGAs.

It held that the 36 states are under obligation to ensure democratic governance at the third tier of government.

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