Supreme Court Grants Financial Autonomy to LG: Excitement and Concerns Arise

 

The Supreme Court's landmark ruling on July 11, granting financial autonomy to Nigeria's 774 local governments, has sparked both excitement and fresh concerns. The decision mandates that financial allocations from the federation account be directed straight to local councils, reducing state governments' control over these funds. This move, widely praised, aims to curb the arbitrary removal of local executives by governors and enhance grassroots development.

Background of the Case

Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), initiated the legal suit against the 36 state governors. He sought full autonomy and direct fund allocation to local governments, arguing that the current system, where funds are disbursed through state governments, violates the constitution. The AGF contended that the governors' practice of appointing caretaker committees instead of holding elections undermines democracy and the constitution.

Supreme Court's Ruling

The seven-member panel, led by Justice Emmanuel Agim, ruled in favor of direct fund allocation to local governments. The judgment emphasized the constitution's recognition of federal, state, and local governments as distinct tiers, each entitled to their share of the federation account. This decision is expected to empower local councils to manage their resources independently, fostering development at the grassroots level.

Reactions to the Judgment

Positive Responses

The judgment has been hailed as a triumph for democracy and local governance.

Prof. Mike Ozekhome (SAN) described it as timely and courageous, emphasizing its potential to curb the misuse of local government funds by state governors. He highlighted the need for local councils to operate independently, promoting grassroots development.

Nigeria Labour Congress (NLC) President Joe Ajaero lauded the judgment, calling it transformative and a significant step towards restoring democracy. He urged for fair local government elections and further constitutional amendments to ensure effective implementation.

Coalition of South East Youth Leaders (COSEYL) also praised the judgment, advocating for immediate local government elections and proper monitoring of fund allocation by anti-corruption agencies.

Concerns and Challenges

Despite the widespread approval, there are concerns about potential pushback from state governors. Critics argue that governors might still exert undue influence over local councils through threats or manipulation of the State Independent Electoral Commissions (SIECs). They call for the transfer of local government election oversight from SIECs to the Independent National Electoral Commission (INEC) to ensure fair and unbiased elections.

Calls for Further Reforms

In light of the judgment, several stakeholders have proposed additional reforms:

·         Uniform Tenure and Elections: The National President of the Nigerian Bar Association, Yakubu Maikyau, suggested a uniform tenure and election schedule for local governments to strengthen democracy.

·         Nigerian Financial Intelligence Unit (NFIU): Advocates urge the NFIU to strictly monitor local government funds to prevent any diversion by state governors.

Conclusion

The Supreme Court's ruling is a significant milestone for local governance in Nigeria. While it offers a pathway to greater autonomy and development for local councils, it also presents new challenges that require vigilant implementation and further legislative support to ensure its success.