Supreme Court Orders State Governors to Cease Controlling Funds for Local Government Units

The Supreme Court has mandated that all state governors refrain from accepting any more funds intended for the nation's 774 local government units. The court declared that it is unlawful for states to regulate the funding of local government areas.

Lateef Fagbemi, the Minister of Justice and Attorney General of the Federation, filed the lawsuit to demand complete autonomy and direct funding distribution to all 774 local governments across the nation. Invoking provisions 1, 4, 5, 7, and 14 of the constitution, Fagbemi urged the Supreme Court to rule that state houses of assembly and governors had a duty to guarantee democratically elected systems at the third level.

The highest court ruled that state governors cannot keep money intended for local government administrations in its main decision, which was read by Justice Emmanuel Agim. According to Justice Agim, the state administration has refused to grant local governments financial autonomy for more than 20 years. Since then, state governors who stand in for local governments have ceased to give them the funds that were intended for them.

Justice Agim waived the defendants' (state governors') initial objections, stating that the nation's 774 local government councils ought to handle their own resources. According to Justice Agim, the AGF is entitled to file the lawsuit and defend the constitution. As a result, the Supreme Court mandated that going forward, local governments receive direct payment from the Federation Account.