LG autonomy: Nigerians jubilate as S/Court orders direct funding for Local Govts

From Cyril Mbah,  AKOR SYLVESTER-Abuja, Daniel Dauda, Jos,  Phil Okose, Onitsha , Chigozie Ikpo, Abuja , Victor Duruamaku Owerri

President Bola Tinubu welcomes the decision of the Supreme Court of Nigeria affirming the spirit, intent, and purpose of the Constitution of the Federal Republic of Nigeria on the statutory rights of local governments.

The President states that 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.

The President emphasizes 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.

“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 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,” President Tinubu states.

President Tinubu notes that the provision of some essential amenities and public goods, such as the construction and maintenance of certain roads, streets, street lighting, drains, parks, gardens, open spaces, and other residual responsibilities, including community security, has tottered owing to the emasculation of local governments.

The President affirms that the decision of the Supreme Court to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, is of historic significance and further reinforces the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.

President Tinubu commends the Attorney-General of the Federation and Minister of Justice, Mr. Lateef Fagbemi (SAN) for his diligence and patriotic effort on this important assignment.

The President states that his administration remains committed to protecting the principles of the charter governing citizens, institutions of government, arms, and tiers of government in furtherance of building an efficient and performance-driven governance system that works for every Nigerian.

.A win for Nigerians–Atiku

Meanwhile, former Vice President Atiku Abubakar has described judgement of the Supreme Court earlier today affirming fiscal autonomy to local government councils in the country as a win for the people of Nigeria.
In a statement by his media office he said: “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 government 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.
“I also share the belief that fiscal autonomy to the local governments should not be limited to revenues from the Federation Accounts, but indeed, should apply to Internally Generated Revenue from the respective local government authorities.
“Many of our states, especially those in the ultra urban areas with high density economic activities, have become notorious in muscling local councils from generating revenue on items that border on motor parks, outdoor advertising, rents and many more.
“The verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments”.

Also, The Inter-Party Advisory Council (IPAC) in Lagos State says there is no more excuse for non-performance by  local government chairmen with the Supreme Court’s ruling on local government autonomy.

The State IPAC Chairperson, Mrs Temilola Akinade, said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.

The Apex Court on Thursday ruled in favour of full  financial autonomy for  the 774 local government councils in the country.

 

NAN reports that In the landmark judgment, the court ordered the Federal Government to immediately start  direct payment of local governments’ funds to the latter’s exclusive accounts.

 

Reading the lead judgment, Justice Emmanuel Agim, decried  the decades-long refusal of  state governments to allow  financial autonomy for local governments in their respective states.

 

Justice Agim noted that the 774 local government councils in the country should have the freedom to manage their funds themselves.

 

Reacting , Akinade, who noted that President Bola Tinubu’s commitment to LG autonomy was commendable ,said the verdict would ensure delivery of more dividends of democracy to 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 leaderships 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.

 

NAN reports Thursday’s ruling followed  a legal action instituted by the Federal Government  against the governors of the 36 states of the federation at the Supreme Court 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.

 

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 recognized 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.

.CNPP demands prosecution of erring governors

Also, The Conference of Nigeria Political Parties (CNPP) has commended the Supreme Court of Nigeria for the landmark judgment barring state governors from withholding funds meant for local government administrations, describing the ruling as a “resounding victory for democracy, national development, and the long-suffering people of Nigeria.”

Deputy National Publicity Secretary, of the CNPP, Comrade James Ezema, in a statement issued on Thursday noted that for too long, governors have usurped the powers and resources of local governments, stifling rural development and perpetuated poverty at the grassroots.

According to the CNPP, “This judgment marks a new dawn for local government autonomy and a significant blow to the impunity and recklessness of state governors in the last two decades.

“The CNPP sees this ruling as a significant step towards decentralizing power, promoting grassroots development, and enhancing the overall quality of life for Nigerians and we believe that the judgment will go a long way in addressing the issues of poverty, inequality, and social injustice that have plagued our nation for decades.”

The group urged all stakeholders to respect and implement the judgment but demanded that governors who violate the teams of the ruling should be prosecuted after leaving office, adding “It is time to hold our leaders accountable for their actions and ensure that the rule of law is upheld.”

The CNPP also called on the Federal Government to ensure the immediate release of funds due to local governments directly to their respective accounts and to monitor their utilization to prevent further abuse.

“We also urge civil society organizations and the media to join us in holding governors accountable for their actions. This judgment is a testament to the power of the judiciary in upholding the constitution and protecting the rights of the people. We commend the Supreme Court for its courage and commitment to justice.”

The CNPP thereafter appealed to governors who are yet to conduct local government elections to do so to end the unconstitutional practice of appointing caretaker committees by immediately allowing for the conduct of free, fair, and credible local government polls in their states or forfeit the local government allocations until a democratically elected local government system is in place.

Similarly, The Director of Civil Liberty’s Organization, Steve Aluko Daniel has described a ruling by the Supreme Court on Thursday over local government autonomy as belated, but a welcome development and timely.

Daniel, a human rights activist and public commentator said  the onus is now on every Nigerian to elect the most credible candidate that they would hold accountable at the local government level.

 

Speaking with Daily Champion Newspaper, the activist believed the ruling of the Apex court will serve as a means of competitive development and reduce corruption at the local government level.

 

“This is just the first step. The next step is for community to organized themselves and elect somebody that is credible, somebody that has the fear of God so that they can be able to pin down corruption at that level.

 

“Local government councils will now be able to deliver services more effectively to their communities, without interference from state governors.”

 

Supreme court ruled that it is  illegal for state Governors to control local government funds.

 

The Court also pronounced that henceforth local government funds should be  send directly to the 774 local councils from the Federation account.

 

Recall Federal Government through the Attorney general of the Federation, Lateef Fagbeme SAN, dragged 36 Governors to court over the contentious issue bothering on local government autonomy.

 

Daily Champion Newspaper reports that, the ruling is a significant step towards decentralizing power and promoting true federalism in Nigeria, and is expected to have a positive impact on grassroots development.

Meanwhile, The Nigeria Labour Congress (NLC) and the National Union of Local Government Employees (NULGE) have commended the judiciary and president Bola Tinubu over the Supreme Court judgment yesterday that granted the third tier of government financial autonomy.

 

NLC and NULGE however, called for the immediate implementation of the court judgment for effective functioning and development of the Local Government Areas (LGAs )

 

The NLC in a separate statement said with the judgment on Thursday, power has been restored to the local government authorities in the country.

 

Signed by its president, Joe Ajaero, the statement urged the governors to comply with the Supreme Court judgment and allow the local government areas to run according to the law.

 

It also advised the federal government to do same with the State Independent Electoral Commissions (SIECs) to allow the right people take charge and manage the affairs of the local government areas.

 

According to the statement: “We at the Nigeria Labour Congress wish to commend the Supreme Court of Nigeria  for restoring power to the Local Governments.

 

“It’s epochal pronouncement on Thursday, July 11, 2024 directing that financial  allocations be made directly to  Local Governments as well as divesting state governments of power  to  remove local government executives is both  courageous and salubrious.

 

“The Supreme Court through this landmark judgment has not only restored our democracy but possibly  hope in the democracy.

 

“Not a few believe the stunted national growth or development  and the overwhelming surge in crimes and threats to our collective good is directly tied to the seizure and  paralysis of local governments by state governments.

 

“The journey to the Local Governments’ freedom has been a tortuous one.

 

“For years we  had watched  with dismay and discontent the remorseless and mindless erosion of the powers of the Local Governments and had  embarked on  a series of  national protests as workers.

 

“We also note the effort made by the Buhari Administration to prise off the strangle-hold of governors on local governments. We must also mention the commendable role on this matter by the 9th Assembly.

 

“This statement will not be complete without paying tribute to the Tinubu  government for its presence of mind to institute this action at the Supreme Court. We specifically commend the President and the Attorney General of the Federation.

 

“Judgment has been given but we are now confronted with implementation.  We  urge that all necessary measures  be taken that this judgment is not sabotaged at the implementation stage.

 

“This brings us to the conduct of elections at local governments.  Elections by SIECS  have been anything but fair. The true freedom of local governments, in our view, must also come from those  who govern them. Should SIECS be allowed to conduct  ‘elections’ or should NEC take over (even as they are over-burdened and are not exactly the best example). Should there be regulatory agency or commission with an oversight over SIECs? We will find the devil in the details through a stake-holder conversation.

 

“Finally, freedom of local governments  will be nothing if those who will take charge, end up behaving badly like their predecessors in power.

 

“Thus, there is need for a self-purgation or a national  rebirth as laws or court pronouncements alone may not be enough”.

 

On its part,  NULGE President Ambali Olatunji

said the local governments autonomy will reduce Nigeria’s problems by half, while stating that the judgment was a step to me development of the local government areas.

 

“We want to return all glory to God almighty. We commend Mr President. He offered courageous leadership in ensuring that this is achieved. We have always maintained that if you don’t fix the Local government system, you can’t fix Nigeria. We also thank the AGF who went through the whole legal process and also the justices who delivered this landmark judgment on behalf of the Nigerian people.

 

“We believe the Nigerian masses will be better for it. LG autonomy will reduce the problem of Nigerian by at least 50 percent. It will reduce the infrastructural gap, improve community security, and food security.  LG will return us back to the good years of functional and well run primary education systems and health centers.

 

“Security will improve. They will be able to recruit and train and train local security operatives to carry out intelligence gathering to fight crimes. Vocational skills for women and youths will become the order of the day.

 

“To our governors, since the supreme court is the apex court in the land, we trust them (governors) that they are law abiding. We appeal to the governors to see the judgment as a necessity towards national growth and development.

 

“We also want to warn the political class that the local level. We don’t expect to see looting of resources at that level. There must be transparency and accountability at the local government level.

 

“NULGE will partner with all anti-corruption agencies to track local government fund to ensure it is judiciously used for the good of the Nigerian people”, he said.

An Owerri based  economist, Dr Gabriel Nnadi Opara has acknowledged the ruling of the supreme court, Thursday on the autonomy of the local governments in Nigeria as a welcome development

 

He believed that the autonomy of the local governments would now bring about massive development at that level

 

The Economist, noted that in the past years when the state governors administered local  government funds from the federation account, they (the governors)  misappropriated the funds

 

He said, ” that misappropriation put all the local governments in the country in the  condition they are today”, commending the apex court for taking the right decision on this

 

Dr Opara further believed that now that the local governments would manage their statutory allocation themselves, the people would hold them accountable where they fail to deliver  dividends of democracy to them

 

He said that it  will be more economical and useful if local governments as stipulated by the constitution of the Federal Republic of Nigeria are made autonomous and allowed to manage their statutory rights

 

” Now infrastructural development  such as  construction of  rural roads, medical clinics  and  others would begin to manifest in the local governments”

 

Also lending his voice, a retired permanent secretary in Imo State civil service, Mr Jude Eze Amadi commended the supreme court for the ruling noting that, ” in the  past, local governments were squizzed and starved of funds by the governors

 

 

He hopped that this time, with  their  allocation  from the federation  account, and  other  revenue accruing  to them, the local governments would be better positioned to carry out development at the grassroot

Hon. Afam Victor Ogene, Leader of the Labour Party Caucus in the House of Representatives, representing Ogbaru Federal Constituency, Anambra State, Thursday lauded the landmark Supreme Court judgment granting financial autonomy to all 774 Local Governments in Nigeria, describing it as a significant milestone in the quest for true democracy and decentralization of power in the country.

 

The lawmaker noted in a release  made available to newsmen that, “This decision will empower grassroots development and bolster the integrity of local governance, marking a substantial step forward for Nigeria’s democratic journey.”

 

Recall that on Thursday, the Supreme Court delivered the landmark judgment in which Justice Emmanuel Agim ruled that all funds due to the 774 local government areas (LGAs) in Nigeria must be paid directly into their accounts, rather than to those of the state governments.

 

The apex court further held that it is unconstitutional for state governments to retain and utilize allocations meant for the LGAs on their behalf, without transferring them to the LGAs, as stipulated in Section 162(3) of the Constitution.

 

According to Ogene, “Today’s Supreme Court pronouncement will have a profound and far-reaching impact on our democracy, stabilizing and revitalizing it for the future. This landmark decision will redefine the essence and practice of democratic governance in our nation, bringing development and governance closer to the grassroots, the very foundation of our democracy.

 

“It will also empower the third tier of government, as intended by the constitution, granting local government administrations greater autonomy and independence from the whims of state governors. No longer will local governments be subject to the puppeteering of self-appointed administrators, allowing the voices, development, and interests of the grassroots population to finally be heard and addressed,” he stated.

 

 

Ogene, a member of the ongoing constitution review panel in Nigeria’s House of Representatives, further emphasized, “The next crucial step in this democratic journey is to empower the Independent National Electoral Commission (INEC) to oversee the organization of local government elections, thereby strengthening the integrity of the process by enhancing the transparency of leadership selection mechanisms at the grassroots level. I am confident and optimistic that the current constitutional review will achieve this vital democratic reform for the betterment of our nation and its people.

 

“I urge governors of states without democratically elected LGA administrators to embrace this sustainable democratic development and take the necessary steps to organize free and fair local government elections, as mandated by the constitution and reinforced by the recent Supreme Court decision,” he pleaded.

It would be recalled that The Supreme Court of Nigeria on Thursday, endorsed autonomy for the 774 local governments in the country, bringing to an end the gross abuse of their affairs by the State Governors.

 

The Apex Court ordered that all funds belonging to  local governments should be paid directly to their accounts, from the federation account.

 

Delivering the lead judgment, Justice Emmanuel Akomaye Agim, barred the governors from receiving, tampering or withholding funds meant for the local governments.

 

The governors were also barred from henceforth dissolving democratically elected officials for local governments and that doing so would amount to a breach of the 1999 Constitution.

 

In the unanimous judgment, the 7-man panel of Justices of the Apex Court agreed with the Attorney General of the Federation and Minister of Justice, Prince Lateef Olasunkanmi, a Senior Advocate of Nigeria SAN that the Constitution of the Federal Republic of Nigeria recognized local governments as the third tier of government.

 

The Justices also agreed with him that some state governors have in the past two decades been using Nigeria’s Constitution to perpetrate unconstitutional acts.

 

The argument of Fagbemi SAN that the Constitution permitted governors to receive money on behalf of local governments but did not permit them to spend such money on their behalf was upheld.

 

Among others, the Apex Court ordered the Federation Account to withhold funds of local governments where democratically elected officials are not in place.

 

It also barred the governors, their agents and privies from embarking on dissolution of democratically elected officials at the local governments level.

 

According to the Justices, the Constitution did not make local governments appendages of the state and that no tier of government should be subordinate to another.

 

Justice Agim held that States are not subordinate to the federal just as local governments should not be subservient to the States.

 

In all, all the request of the federal government were granted in line with the provisions of the 1999 Constitution and as canvassed by the Justice Minister.

 

Fagbemi had on May 24 this year on behalf of the Federal Government dragged the 36 governors before the Supreme Court over alleged misconduct in the running of affairs of local governments in the country.

 

The Attorney General instituted the court action against the governors primarily seeking full autonomy for local governments as third tiers of government in the country.

 

In the suit marked SC/CV/343/2024, the AGF had prayed the Apex Court for an order prohibiting State Governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders for local governments..

 

In the originating summons he personally signed, Fagbemi also prayed the Supreme Court 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.

 

He also sought order of the Apex Court stopping governors from constituting  Caretaker Committees to run the affairs of local governments as against the Constitutionally recognized and guaranteed democratically run system.

 

Besides, the AGF 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 Governors had sued through their respective State Attorneys General demanding dismissal of the suit on the ground that the Supreme Court had no jurisdiction to adjudicate in the matter and that the suit did not disclose any reasonable cause of action against them.

 

The request for dismissal was however rejected by the Justices for being frivolous vexatious and lacking in merit.

 

The suit is predicated on 27 grounds among which are that the Nigerian Federation is a creation of the 1999 Constitution with President as Head of the Federal Executive arm of the Federation and has sworn to uphold and give effectiveness to the provisions of the Constitution.

 

*That the governors represent the component states of the Federation with Executive Governors who have also sworn to uphold the Constitution and to at all times,give effectiveness to the Constitution and that the Constitution, being the supreme law, has binding force all over the Federation of Nigeria.

 

* That the Constitution of Nigeria recognizes federal, states and local governments as three tiers of government and that the three recognized tiers of government draw funds for their operation and functioning from the Federation Account created by the Constitution.

 

*That by the provisions of the Constitution, there must be a democratically elected local government system and that the Constitution has not made provisions for any other systems of governance at the local government level other than democratically elected local government system.

 

*That in the face of the clear provisions of the Constitution, the governors have failed and refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state.

 

*That the failure of the governors to put democratically elected local government system in place, is a deliberate subversion of the 1999 Constitution which they and the President have sworn to uphold.

 

*That all efforts to make the governors comply with the dictates of the 1999 Constitution in terms of putting in place, a democratically elected local government system, has not yielded any result and that to continue to disburse funds from the Federation Account to governors for non existing democratically elected local government is to undermine the sanctity of the 1999 Constitution.

 

*That in the face of the violations of the 1999 Constitution, the federal government is not obligated under section 162 of the Constitution to pay any State, funds standing to the credit of local governments where no democratically elected local government is in place.

 

Fagbemi SAN therefore asked the Apex Court to invoke sections 1, 4, 5, 7 and 14 of the Constitution to declare that the State Governors and State Houses of Assembly are under obligation to ensure democratically elected system are effected at the third tier of government in Nigeria and to also invoke the same sections to hold that the governors cannot lawfully dissolve democratically elected local government councils.

 

The AGF also prayed for invocation of sections 1, 4,  5,  7 and 14 of the Constitution to declare that dissolution of democratically elected local government Councils by the Governors or anyone using the State powers derivable from laws enacted by the State Houses of Assembly or any Executive Order is unlawful, unconstitutional, null and void.