A dynamic change has occurred in the strides of local government existence as a much debated Local government autonomy ruling has been heard and set in motion.
Over the years the ideal position and status of the local government as a third tier government have been of constant debates. as many local governments in Nigeria have struggled under the heavy hand of state governors, who have been accused of the manipulation of local government funds through the State Joint Local Government Account.
These practices have stifled local governance, inhibited development, and disenfranchised citizens at the grassroots level. The over-centralization of power perpetuated inefficiencies and corruption.
In a decisive move, the Supreme Court last Thursday, July 11th 2024 set the councils free from the yokes of the governors, granting them financial autonomy. The court declared the governors’ retention of local government funds as a violation of the 1999 constitution. The ruling upholds the constitutional guarantee of a system of local government by democratically elected councils, as enshrined in section 7 of the 1999 Constitution.
The judgment mandates that local governments should receive their funds directly from the Federation Account, bypassing state governments.
Justice Emmanuel Agim, who read the lead judgment, declared,
“I hold that the state’s retention of the local government funds is unconstitutional. 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.
“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs.”
This decision curtails the financial stranglehold that state governments have exercised and aims to prevent the mismanagement and diversion of funds meant for local development.
President Bola Tinubu welcomed the verdict, saying, “It affirmed the spirit, intent, and purpose of (Nigeria’s) Constitution on the statutory rights of local governments.”
According to him, a fundamental challenge to the nation’s advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
In a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale, the President emphasized that the onus is 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.
He said, “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 judgment, 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.”
Predictably, the development has attracted reactions across the political divide. Former Vice President Atiku Abubakar described the ruling as “A win for the people of Nigeria” and a step in the right direction.
The Labour Party in a statement by its Secretary, Obiorah Ifoh, said, “We, at the Labour Party welcomed the Supreme Court decision granting financial autonomy to local government councils in the 36 States of the federation including the Federal Capital Territory. This decision was long in coming but as the saying goes, it is better late than never.’’
The Nigeria Labour Congress and the National Union of Local Government Employees also lauded the judgment.
In this regard, the Nigeria Union of Local Government Employees NULGE and the Association of Local Governments of Nigeria, ALGN have urged the Nigerian Financial Intelligence Unit to track council funds and prevent their diversion to state governors by council chairmen.
What are your thoughts? do you support this move ?