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In a landmark ruling on Thursday, July 11, 2024, Nigeria’s Supreme Court affirmed the country’s 774 local governments financial autonomy. This occurred after the Federal Government dragged the 36 state governors to the apex court over alleged misconduct in handling local government affairs. Led by Attorney General Lateef Fagbemi, the federal government prayed for an order prohibiting state governors from unilateral, arbitrary, and unlawful dissolution of democratically elected leaders of local governments.
The Supreme Court’s judgement strengthened local governments’ autonomy and independence in Nigeria. For over two decades, local governments have been crippled in most states, where the governors seize their federal allocations and only release funds to them to keep them going barely. This long-running funding arrangement had helped governors exert absolute control over the local governments, including the arbitrary dissolution of elected local government executives despite repeated court decisions adjudging such action as illegal. The local governments’ dependence also stemmed from the governors’ overbearing influence on other institutions, such as their states’ independent electoral commissions.
The judgement includes several far-reaching decisions that significantly reposition local government administration in Nigeria. The court ordered local governments to now receive their allocations directly from the Accountant-General of the Federation, bypassing state governments. This empowers the Accountant-General to disburse federal funds to local governments without interference from state governors. As a result, any effort to withhold funds meant for local government by the state government is illegal, as the ruling prohibits governors from seizing federal allocations to local governments and only releasing funds to them piecemeal.
Also, the judgement upheld the constitutional provision for democratic elections of local government leadership. It condemns the arbitrary dissolution of elected local government executives by governors as illegal despite repeated court rulings against such actions. However, conducting elections for local government leadership is part of the concurrent legislative list, which means the local government still depends on the state government’s transparency for leadership.
Lapses in the verdict
Francis Oronsaye, the managing partner at Heritage Attorneys, praised the apex court for granting local governments full financial autonomy and prohibiting governors from interfering with their funds, stating that the ruling empowers the third tier of government to serve the needs of grassroots communities better nationwide, which is also legally backed by the Executive Order No. 10 signed by the Muhammadu Buhari-led administration in 2010 which granted the power to the local government councils.
“Though this is not the first decision on local government autonomy, as in the case of GOVERNOR OF EKITI STATE V OLUOMO (2017) 3 NWLR (PT 1551), what makes this decision unique is the express order for funds due LGCs to be paid directly to them,” he said.
However, he revealed that existing lapses mean it is not yet Uhuru for the local government councils. He mentioned that dependency on state governors, who hold other control mechanisms, means the judgment may not produce its desired result.
He said, “Every state has local government laws which it enacts following the powers of the state as enshrined in Section 7(1) of the Constitution. They vary by state; some contain provisions that are inimical to the growth of the LGCs. These are means of whittling down the powers of the Councils.”
He cited instances where governors tinker with the chairperson’s tenure, limit funds that the commissioner in charge of local government can approve or facilitate the impeachment of recalcitrant chairmen, as such powers are constitutionally vested in the state government.
“The question remains, as long as the constitutional provisions empowering states to enact Local Government Administration laws and to conduct elections into LGCs exist, the problem may not go away soon. There are calls for constitutional amendments to give INEC the power to conduct elections into LGCs. Again, there is a need to amend Section 162(6) of the Constitution, which creates the joint account,” Mr Francis said.
Conclusion
While the financial autonomy granted to the local government promises progressive democratic practice in Nigeria, existing loopholes may hinder its effective implementation. Constitutional mechanisms designed to checkmate federalism at the grassroots should be reviewed before the verdict can successfully impact the local government level.
