Breaking News: Supreme Court Directs FG to Pay Allocations Directly to Local Government

Abuja, Nigeria – July 11, 2024

In a landmark ruling, the Supreme Court of Nigeria has directed that allocations meant for the 774 local government areas in the country be paid directly to them, bypassing state governments. This decision is poised to significantly alter the distribution and management of funds across the nation.

The court declared that state governments have no constitutional right to manage or retain allocations on behalf of local governments. The ruling emphasized that such practices are unconstitutional. The case, instituted by the Federal Government through the Attorney General of the Federation and Minister of Justice, challenged the practice by the 36 state governors of disbursing allocations contrary to the provisions of the 1999 Constitution.

Justice Emmanuel Agim, who delivered the judgment, stated that state governors have historically exploited the constitutional privileges to defraud and deprive local governments of their rightful allocations. He reiterated that the Constitution mandates the equitable distribution of allocations among the three tiers of government: federal, state, and local.

The court also stipulated that these allocations should be directed only to democratically elected local government councils. Furthermore, the Supreme Court ruled that state governors do not possess the authority to dissolve democratically elected local governments or replace them with caretaker committees.

This decision marks a significant shift in the governance and financial autonomy of local governments in Nigeria, aiming to enhance accountability and efficiency in the use of public funds.