From Romanus Ugwu, Juliana Taiwo-Obalonye, Ndubuisi Orji, Godwin Tsa, Okwe Obi, Adanna Nnamani, Idu Jude, Abuja, Stanley Uzoaru, Owerri and Lukman Olabiyi
Commendations have trailed the Supreme Court’s decision affirming the constitutional rights of local governments in Nigeria.
In a landmark ruling, yesterday, the apex court declared that it was unconstitutional for state governors to hold funds allocated for the local government administrations.
The seven-man panel, in the judgment delivered by Justice Emmanuel Agim, declared that the 774 local government councils should manage their funds themselves.
It held that the power of the government is portioned into three arms of government, the federal, the state and the local government.
The judgment followed a legal action instituted by the Federal Government against the governors of the 36 states over what it called their interference in the administration of local councils in their respective states.
The suit filed by the Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, sought full autonomy for all local government councils in the country. In the suit, the Federal Government specifically prayed the court to issue an order prohibiting state governors from embarking on unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders.
The suit also asked for an order permitting the funds standing in the credits of local governments to be directly channelled to them from the Federation Account, in line with the provisions of the constitution as against the alleged unlawful joint accounts created by governors.
The FG also prayed the Supreme Court for an order stopping governors from further constituting caretaker committees to run the affairs of local governments as against the constitutionally recognised and guaranteed democratic system.
It equally applied for an order of injunction restraining the governors, their agents and privies, from receiving, spending or tampering with funds released from the federation account for the benefits of local governments when no democratically elected local government system is put in place in the states.
The judgment has put an end to transition committees, caretaker committees or sole administrators.
Among those who have applauded the judgment include President Bola Tinubu, the Peoples Democratic Party (PDP), the Labour Party (LP), the Nigeria Labour Congress (NLC, the Trade Union Congress (TUC), the Association of Local Governments of Nigeria (ALGON), the National Union of Local Government Employees (NULGE), the Coalition of United Political Parties (CUPP), the Inter-Party Advisory Council (IPAC), the Coalition of South East Youth Leaders (COSEYL), the Lagos State council chairmen. The All Progressives Congress (APC), however, said it would issue a formal statement in reaction on today.
“Yes, we are fully aware of the judgment, we will wait to get the full details before reacting to it. We are already putting up a statement for the judgment, but it will certainly be released on Friday,” Felix Morka, said.
President Bola Tinubu, in a statement by Ajuri Ngelale, said the ruling would enhance Nigeria’s true federal structure and ensure local officials are held accountable to the people they serve. He noted that ineffective local government administration has been a fundamental challenge to the nation’s advancement.
He stressed that the onus is now on local council leaders to ensure the broad spectrum of Nigerians at the grassroots level benefit from people-oriented service delivery.
Tinubu said the Federal Government instituted the lawsuit because of the belief that the people must have relief, and the judgment affirms that legitimate means can be used to restructure the country.
“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 that exists between us. This country belongs to all of us. By virtue of this judgement, 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.
“My administration instituted this suit because of our unwavering belief that our people must have relief, and today’s judgement will ensure that it will be only those local officials elected by the people that will control the resources of the people. This judgement stands as a resounding affirmation that we can use legitimate means of redress to restructure our country and restructure our economy to make Nigeria a better place to live in, and a fairer society for all of our people.”
Tinubu commended Fagbemi for his diligence and patriotic effort on this important assignment.
He reaffirmed his administration’s commitment to protecting the principles of the constitution and building an efficient governance system that works for every Nigerian.
•Atiku hails judgment
Reacting in a post on his X page, Alhaji Atiku Abubakar commended the Supreme Court’s judgment, describing it as a step in the right direction for national development.
“The court’s ruling is a step in the right direction, and a major corrective action in greasing the wheels of national development across the country.
“The decision by the Federal Government to consolidate disbursements of local councils’ revenues into the state governments’ accounts was a decision that was borne out of politics of hasty compromise.
“I align with the decision of the Supreme Court that the structure of the Nigerian government is portioned in three layers, and of these, the local governments should be centres of development.”
Atiku also called for the expansion of fiscal autonomy beyond federation account allocations.
• Significant milestone –Senate, Reps
The Senate President, Godswill Akpabio, described it as a victory for democracy and called on all states to respect the verdict.
According to him, the ruling affirmed that local government administration is a distinct arm of government meant to serve the grassroots. He said it empowers local governments to undertake projects independently and ensures their funds are used for the development of their communities.
He called for synergy between the federal and state governments to work together with the legislature to ensure the full implementation of the Supreme Court’s judgment.
Speaker of the House of Representatives, Tajudeen Abbass, said members were happy because history has been made.
“This is an issue that has been before the parliament for the past two years, all the constitutional amendments that were so far carried by the National Assembly, one aspect of it has always been local government autonomy, how do you make the local government work independently?
“Today, that impossibility became a reality, everyone is happy and we are looking forward to an LGA that will work functionally and that will be able to work on their own and extend goodwill to their own people undisturbed by the excesses by the state governors.”
•It’ll trigger grassroots development –PDP
For the Peoples Democratic Party (PDP), the judgment will help trigger development at the grassroots. According to the Deputy National Publicity Secretary, Ibrahim Abdullahi, the joint account between states and local government areas, has stifled development in the local government levels across the country in the last 25 years.
“We are in support of that decision. We agree with the government on the idea of creating autonomy for the local governments. If you recall it has been a clamour by Nigerians for the third tier of government to be given autonomy. That way, governors will not emasculate them at the state level; thereby reducing the possibility of growth and development.
“The joint account, which the governors have been using over the last 25 years of this republic, has made it impossible for local governments to concentrate on development at that level, which is the essence of their creation. So, we are in support.
•Long overdue –LP
The Labour Party (LP), in a statement by the National Publicity Secretary, Obiora Ifo, said the decision was long in coming. “It has put to rest the debate as to whether or not local government areas that are the closest level of government to the ordinary people deserve to enjoy some form of autonomy to address challenges facing the masses within their jurisdiction.
“We can now safely say that local government areas now have greater freedom to initiate and complete projects which will reduce suffering at the grassroots.
“This autonomy comes with a huge responsibility on local government councils, just as councillors now owe their constituents a duty to hold local government chairmen accountable by ensuring prudent management of their resources.
“The expectation of Nigerians from the local government administration now is simple.
“Each of them must now take up the challenge of this new found independence to ensure judicious use of public funds in their custody.
“We would also like to urge council chairmen not to see the additional inflow of public funds as an opportunity to engage in reckless spending and embarking on white elephant projects, as that can negate the whole essence of the financial autonomy granted them.”
•NLC, TUC, ALGON, NULGE
The NLC and the TUC congratulated President Tinubu.
“I have to congratulate you on the issue of local government autonomy. We have been in the streets protesting for local government autonomy. Now that there is light at the end of the tunnel, it will amount to ungratefulness if we fail to commend you,” the NLC President, Joe Ajaero, said.
In his reaction, TUC president, Festus Osifo, said: “We commend you on the landmark judgement of the Supreme Court. History will not forget what has happened today. With this judgement, we believe Nigeria will make progress.”
The Association of Local Governments of Nigeria (ALGON) said the judgment is the birth of a new democracy in Nigeria. Its Board of Trustees Secretary, Chief Chukwudi Ezinwa, noted that a lot of atrocities had been committed by some of the state governors, who had prevented the local government from carrying out its operations.
According to him, once we get it right at the local government level, states will have less work to do.
The National President, National Union of Local Government Employees (NULGE), Mr Ambali Olatunji, said it was freedom and a new dawn for the country.
“We believe that with the judgment on local government autonomy, over 50 percent of Nigeria’s problems have been fixed. Also, we hope there will be financial integrity at the local government levels and all financial transactions will be tracked.
“We will be working with anti-corruption agencies to ensure growth and development,” Olatunji said.
•SANs hail judgment
Chief Mike Ozekhome, Moyosore Onigbajo, Abiodun Olatunji, all Senior Advocates of Nigeria (SANs), have hailed the judgment as timely and courageous, noting that by the decision, money would now be made available directly to the local government areas, which will no longer be subservient, like fawning slaves to state governors.
According to Ozekhome, “the judgment is salutary, timely and regenerative. It should be upheld by all governments and people in Nigeria for better democratic dividends.
“I see this as victory for our wobbling democracy, even if we are far removed from true fiscal federalism, where the federating units control and utilise their God-given resources, while paying royalty or tax to the central government.
“This case is one big plus for tested courtroom gladiator, Prince Lateef Fagbemi, SAN, the Attorney General of the Federation, who initiated the case at the apex court, invoking its original jurisdiction. Surely, to jaw-jaw is better than to war-war.”
Former Attorney General of Lagos State and Commissioner for Justice, Onigbajo, said the apex court has done its bit by correctly re-stating and interpreting constitutional provisions relating to the autonomy and independence of local governments.
“The Court further tightened the screws against control of LG funds by the states by mandating that local government funds should be released to them directly and not through the states or any joint account.
“All these are very good, but the problem really is in the enforcement of the judgment. Can local government chairmen look their governors in the eye and refuse to either send the funds back to the governor who anointed them as the chairmen or use the funds in the manner directed by the governor.
“Time will, indeed, tell. Be that as it may, however, the additional hurdles put in the way of diversion of LG funds by states is a welcome development.”
Also reacting, Olatunji said the judgment addressed the longstanding issue of state governors’ overbearing influence on local government administrations.
According to him, this influence has historically stifled development at the local level, with former President Muhammadu Buhari highlighting instances of governors pilfering local government resources.
“By affirming the autonomy of local governments and ensuring their financial independence, the Supreme Court has taken a decisive step towards strengthening Nigeria’s federal structure and democratic governance,” he said.
•LG chairmen no longer have excuse for non-performance –IPAC
The Inter-Party Advisory Council (IPAC) in Lagos State said there was no more excuse for non-performance by local government chairmen with the Supreme Court’s ruling on local government autonomy.
Its chairperson, Mrs Temilola Akinade, noted that President Tinubu’s commitment to LG autonomy was commendable. She said the verdict would ensure delivery of more dividends of democracy to the people at the grassroots.
Akinade said: “That is the best way to go. Our expectation now is that LGs having full autonomy will help the council chairmen to do more in the various local government areas.
“If they do not see this autonomy as a way of enriching themselves the more, it is expected they will do more to impact the people.
“It is high time the citizens questioned their council leadership on how they spend resources meant for them.
“With this, I don’t think there should be more stories by local government chairmen. They need to do more for the people.”
The IPAC boss commended the President for approaching the Supreme Court to ensure councils have autonomy.
•Restoration of grassroots democracy in Nigeria
Mr. Osita Okechukwu hailed the justices of the Supreme Court for restoration of the people’s collective interest in democracy at the grassroots level, and the reinforcement of Section 7 of the 1999 Constitution of the Federal Republic of Nigeria, which expressly stated that the system of democratically elected local government councils is guaranteed under the constitution.
He regretted that for 25 years the governors have violently breached Section 7 of the Constitution by brazen rigging of local councils elections, and by extension, mismanagement of the 20.6 percent local government funds; hence, dampened the development of grassroots democracy.
He noted that President Tinubu has by this judgment restructured the local government system.
He saluted the Attorney General, Lateef Fagbemi, for excellent suit, which is a signpost for renewal of the people’ hope in grassroots democracy via the temple of justice system.
Okechukwu urged Nigerians to rise up henceforth, and monitor the 20.6 percent federal allocation to local government councils for prudent use in development of the rural communities.
•LG autonomy decorated scam if …, HURIWA
Human Rights Writers Association of Nigeria (HURIWA) said the verdict would be a ‘decorated scam’ if governors are allowed to hand pick chairmen of local councils.
The National Coordinator, Emmanuel Onwubiko, in a statement said the Supreme Court should have been asked to order expressly all the state governors to adhere strictly to Section 7 (1) of the constitution by allowing for transparent and credible council polls in their state.
“We are of the opinion that the judgement of the Supreme Court, with regard to the question of autonomy of local councils, is not complete since governors all over Nigeria still appoint their cronies, house boys, boot-lickers and political thugs, as local council chairmen.
“There is no guarantee that council funds wouldn’t be automatically rechannelled to their political bosses, the governors, if the funds belonging to their councils are paid to the local councils directly. There are no accountability mechanisms to stop the above re-looting of council funds by governors from happening.”
He, however, commended the Attorney General and Minister of Justice Lateef Fagbemi (SAN) for initiating the matter in the first place, but urged him to go back to the Supreme Court to obtain an order compelling the state houses of assembly to put mechanisms in place to ensure that council elections are credible, just as the rights group said the Supreme Court should make it obligatory for governors to work with only elected council officials, instead of appointing their aides as heads of the LGAs.
•Lagos LG chairmen hail verdict
Local Government Area chairmen in Lagos State have said the verdict would strengthen the administration of local government areas in Nigeria.
Mr Olusegun Onilude, Chairman, Badagry Local Government Area, said the verdict is a good development in the administration of the local government areas.
According to him, this will make all council chairmen to be accountable for all their deeds after leaving office.
“This will make all chairmen sit tight because there won’t be excuses for non performance,” he said.
Onilude, however, said it would have been most beautiful if the verdict had also given autonomy to all Local Council Development Areas (LCDAs) in the country.
He said the verdict was silent on who would conduct council elections in the country.
Ms Surah Animashahun, Chairman, Epe Local Government Area, said the verdict ushered in financial freedom for council chairmen in the country.
Animashahun said that councils in Lagos State have financial autonomy, which has allowed for good working relationships with the state government.
She said the verdict was a right step in the right direction.
She added that the Lagos State Government had, over the years, complied with the Federal Government’s directive on financial autonomy for local governments.
Speaking, Mr. Johnson Babatunde, chairman, Orile-Agege Local Council Development Area (LCDA), also commended the apex court for the judgment.
Babatunde said the people at the grassroots had been suffering too much, but that the new financial autonomy would bring succour to the community residents.
“It’s a welcome development. Nigerian citizens have been suffering too much. It’s enough for the state governors to take the local government for a ride. The local government is the closest to the grassroots, where security, and other social amenities are paramount; the local councils deserve it,” he said.
•It’ll deepen democracy –COSEYL
Igbo youths, under the aegis of the Coalition of South East Youth Leaders (COSEYL), described the judgment as a landmark that will deepen the nation’s democracy.
President General of the Igbo group, Goodluck Ibem, in a statement, added that it has returned governance back to the people in line with the vision of the 1999 constitution.
He, therefore, urged “all governors to immediately conduct local government elections in accordance with the Supreme Court’s judgement and the constitution of the Federal Republic of Nigeria.”
“We call on the National Assembly to amend the constitution to ensure that the Independent National Electoral Commission (INEC), conducts local government elections.
“The amendments should include that the tenure of LG chairmen must be three years as enshrined in the constitution.
“We call on the Economic and Financial Crimes Commission, (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), NFIU and other anti-crime agencies to monitor all allocations to the local governments to ensure that their funds are being used for the purpose and benefit of the people.
“No local government chairman should allow himself to be intimidated by his governor to handover the people’s money to him. The chairmen should know that they are only accountable to the people,” Ibem stated.
•Return LGA funds or face legal action, SERAP tells 36 governors, Wike
Socio-Economic Rights and Accountability Project (SERAP) has urged Nigeria’s 36 governors and the Minister of the Federal Capital Territory, Abuja, Mr Newsom Wike to immediately account for and return the local government funds, which they have collected over the years.
SERAP’s call is coming on the heels of the landmark decision by the Supreme Court declaring unconstitutional and unlawful the retaining and using by the 36 state governors and FCT minister of funds meant for the 774 local governments in the country.
In a statement yesterday by SERAP’s deputy director, Kolawole Oluwadare, the organisation said: “We applaud the Supreme Court for this groundbreaking decision, which will end the persistent alleged misappropriation by several of trillions of Federation Account Allocation Committee (FAAC) allocations or public funds meant for local governments.
“Following the Supreme Court’s judgment, there is now a clear legal precedent to hold governors and the FCT minister to account for how they have spent the local government funds collected by them.
“Implicit in the Supreme Court’s judgment is the requirement for the governors and the FCT minister to immediately account for and return the funds meant for local governments but retained and used or allegedly misused by them.
“Accounting for and returning the LGA funds collected would build trust in democratic institutions and strengthen the rule of law.
“The National Assembly must urgently amend the provisions of Section 162 of the Nigerian Constitution 1999 [as amended] to ensure that local government allocations from the Federation Account are directly paid to local government areas and not collected by governors and the FCT minister.
“If the governors and the FCT minister fail to account for and return the funds meant for local governments in their states and FCT within seven days, SERAP shall consider appropriate legal actions to compel the governors and the FCT minister to comply with our requests in the public interest.
“It is in the public interest for the governors and the FCT minister to immediately account for and return the funds meant for local governments in their states and the FCT since 1999.
“Accounting for and returning the local government funds collected would alleviate poverty, improve access of Nigerians to basic public goods, and enhance the ability of the local governments to effectively and efficiently discharge their constitutional and statutory responsibilities.
“It would be recalled that former President Muhammadu Buhari had, in December 2022, stated that if the money from the Federation Account to the state is about N100 million, N50 million will be sent to the chairman, but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.
“The 36 states in Nigeria and the Federal Capital Territory, Abuja, have reportedly collected over N40 trillion federal allocations meant for the 774 local governments areas in the country and the FCT.
“The FAAC disbursed to states N225.21 billion federal allocations meant for local governments in November 2023 alone. States also collected N258,810,449,711.47 federal allocations meant for local government areas in December 2023.”