The Supreme Court has declared that it is unconstitutional for state governors to hold onto funds meant for Local Government (LG) administrations, on Thursday.
This was contained in the lead judgement read by Justice Emmanuel Agim.
According to the apex court, it is observed that the state governments’ refusal of financial autonomy for local governments has gone on for over two decades.
Justice Agim said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
He noted that the 774 local government councils in the country should manage their funds themselves.
In his judgement, Justice Agim said the AGF has the right to institute the suit and protect the constitution.
The apex court consequently directed that Local Government allocations from the Federation Account should be paid directly to them henceforth, and not to state government coffers.
Justice Agim pointed out that the state governors’ retention of the monies meant for the Local Governments truncates the latter’s activities.
Justice Agim ordered the immediate compliance of the judgement, stating that no state government should be paid monies meant for Local Governments.
The preliminary objections of the state governors, who were the defendants in this case were dismissed.
