Supreme Court Orders Direct Payment of Funds to Local Governments, Bars Governors
Written by Jerry Alomatu on July 11, 2024
Nigeria’s Supreme Court has ruled that state governors must no longer control funds designated for the country’s 774 Local Government Areas (LGAs). The court declared the practice unconstitutional and ordered that funds intended for LGAs be paid directly to them from the federation account, bypassing state governors.
In a landmark judgment delivered by a seven-member panel led by Justice Lawal Garba, the court cited Section 162 (4, 5, and 6) of the Constitution, which does not permit joint accounts for states and LGAs. Justice Emmanuel Agim delivered the lead judgment, emphasizing that states are merely agents for federal government disbursements to LGAs, not custodians of the funds.
The court criticized the prolonged exploitation of this constitutional provision by states over two decades, which has hampered the effective functioning of local government governance. It affirmed that LGAs have the exclusive right to manage their finances independently.
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Author: Jerry Alomatu
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