Following the Supreme Court’s judgement granting financial autonomy to the 774 Local Government Areas in the country, Governor Charles Soludo of Anambra State and his Cross River State counterpart, Senator Bassey Out, yesterday, said they accepted the verdict in good faith.
However, efforts to get the Chairman of Nigeria’s Governors Forum, NGF, and governor of Kwara State, Abdulrahman Abdulrasaq proved abortive as he evaded questions from State House correspondents after meeting with President Tinubu.
Landmark judgement
The apex court, in a landmark judgement, ruled that it is unconstitutional for governors to hold onto funds meant for local governments.
The Supreme Court, in a unanimous decision by a seven-member panel of justices, barred governors of the 36 states of the federation from receiving, withholding, tampering or utilizing funds that stand to the credit of the local government areas.
The ruling, however, generated mixed reactions.
While President Bola Tinubu, former Vice President Atiku Abubakar, the National Union of Local Government Employees, NULGE, Socio-Economic Rights and Accountability Project, SERAP, Labour Party, LP, and Coalition of United Political Parties, CUPP hailed the Supreme Court judgement, former governor of Delta State, Chief James Ibori, said the verdict has dealt a severe setback to the principle of federalism in the country.
Recall that the Federal Government had in a suit marked SC/CV/343/2024, filed on May 24, 2024, prayed to the Supreme Court to give full autonomy to local governments.
It also urged the court to issue an order prohibiting state governors from embarking on unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders.
Besides, the Federal Government prayed to the Supreme Court for an order, stopping governors from further constituting caretaker committees to run the affairs of local governments, against the constitutionally recognised 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 benefit of local governments when no democratically elected local government system is put in place in the states.
It argued that Nigeria, as a federation, is a creation of the 1999 Constitution, as amended, with the President, as Head of the Federal Executive Arm, swearing on oath to uphold and give effects to provisions of the Constitution.
It’s unconstitutional for govs to hold LG funds
Ruling on the matter, yesterday, the apex court held that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to the benefit of LGAs in their states.
According to the court, the “dubious practice” which has gone on for over two decades, is a clear violation of Section 162 of the 1999 Constitution, as amended.
In its lead judgement delivered by Justice Emmanuel Agim, the Supreme Court further held that no House of Assembly of any state has the power to make laws that could in any manner, grant governors the right to interfere with statutory allocations meant for the council areas.
Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for councils must be directly paid to them from the federation account.
“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.
“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs,” the apex court held.
It further declared as unconstitutional, the appointment of caretaker committees, by governors to run the affairs of the LGAs.
It held that the 36 states are under obligation to ensure democratic governance at the third tier of the government.
Consequently, the Supreme Court ordered that, henceforth, funds of local governments where democratically-elected officials are not in place should be withheld.
It equally barred governors, their agents and privies from dissolving democratically elected local government officials in their state, adding that such action would amount to a breach of the Constitution and an act of misconduct.
Earlier, the apex court dismissed as lacking in merit, preliminary objections the state governors filed to challenge the competence of the suit.
It held that the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, being the chief law officer of the federation, is statutorily qualified to institute the action on behalf of the LGAs.
The court equally held that Section 232(1) of the 1999 Constitution, as amended, conferred it with the original jurisdiction to hear and determine the matter.
Orji Kalu reacts
Also reacting, the senator representing Abia North, Orji Uzor Kalu, said: ‘’The Supreme Court judgement is one that should be hailed and applauded, especially for the courage and independence shown by the judiciary.
‘’The Supreme Court, being a policy court, did what is right and beneficial to the society. While it may look like interference in the states, we should accept that all the calls for end of insecurity, kidnappings and banditry has just begun with this autonomy granted to local governments.
‘’When the local governments are in total control of their funds, there is flow of resources and activities in the local areas. For instance, when I was governor between 1999-2007, the autonomy of my local government chairmen was a major breakthrough to the success of my administration.
‘’The local government chairmen built roads and gave contracts to local contractors. The chairmen were able to take full responsibility of what happened in their local government and crime was reduced to the barest minimum.’’
Judgement is great, final —Soludo
Governor Charles Soludo of Anambra State described the judgment as great and final.
Professor Soludo stated this while speaking with State House correspondents after meeting with President Tinubu, alongside chairman of Nigeria’s Governors Forum, Governor Abdulrahman Abdulrasaq of Kwara State, Governor Usman Ododo of Kogi State and Prince Bassey Otu of Cross River State at the Presidential Villa in Abuja.
Asked to react to the Supreme Court judgement granting local government autonomy, he said: “That’s great. I mean, the Supreme Court is supreme, the final authority and I’m a democrat. I believe in the rule of law.
“Once the Supreme Court has spoken, it has spoken. I think the Governors Forum is meeting to review this. I haven’t seen the document myself. I’ve been extremely, very busy all through the day but I’ve seen snippets of it.
“But at a fundamental level, yes, we need resources to get down to the grassroots and we need the people’s money to work for them at all levels, whether at the federal or the state and the local government.
Judgement taken in good faith — Gov Otu
Also speaking to State House correspondents after meeting with President Bola Tinubu, Governor Bassey of Cross River State, yesterday, said the governors had taken the judgement in good faith.
“About the Supreme Court judgement, Nigeria is a democratic country, and we know very well that President Tinubu and the Renewed Hope Agenda is a democratic one.
“I believe the judgment is taken in very good faith. All Nigerians should be happy about it. I don’t think anybody is against development in the local governments. I don’t think so.
Judgement is resounding affirmation —Tinubu
Also reacting to the Supreme Court’s decision, President Tinubu stated that a fundamental challenge to the country’s advancement has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration was nearly absent.
President Tinubu, in a statement by his spokesman, Mr Ajuri Ngelale, was quoted as saying: “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 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.’’
Respect S-Court judgement, Akpabio tells govs
In his remarks, President of the Senate, Senator Godswill Akpabio, yesterday, advised governors to respect the Supreme Court judgement that granted autonomy to local governments.
The Speaker of the House of Representatives, Trajudeen Abbas, on his part, described the judgement as an impossibility that has become a reality.
Speaking to State House correspondents after meeting with the President at the Presidential Villa, Abuja, Senator Akpabio said: “For us in the legislature, the Supreme Court has spoken and we have no option than to abide by the Supreme Court ruling.
“So, I will just call on all states of the federation to respect what the Supreme Court has done and then we will go back to the legislature and see where we can dot the i’s and cross the t’s to ensure full implementation.
Impossibility has become reality —Reps Speaker
Describing the judgement as an impossibility that has become a reality, Speaker of the House of Representatives, Trajudeen Abbas, said: “Today (yesterday) the impossibility became a reality, everyone is happy and we are looking forward to local government that will work functionally and that will be able to work on there own and extend goodwill to their own people undisturbed by the excesses by the state Governors.”
It’s a win for Nigerians —Atiku
Former Vice-President Atiku Abubakar has described the ruling of the Supreme Court as a “win for the people of Nigeria”.
Reacting in a post on his X page Atiku said: “The judgment of the Supreme Court earlier today (yesterday) affirming fiscal autonomy to local government councils in the country is a win for the people of Nigeria.
“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 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 account 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.
LGAs emancipated, says AGF
On his part, the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, said: “Naturally, one will be happy, should be happy, Nigerians are happy about it.
“I call it local government emancipation judgement because it has really emancipated the local government from the shackles of the past and I hope that local government officials will look at it as an opportunity to develop their various local governments.”
On how to ensure compliance to the part of the judgement that requires state governments to conduct elections for government areas, he said: “The ball is in the court of the governors. Let us see what they will come out with, but the judgement is clear as to what they should do, the judgement is clear as to what consequences will be attached to failure or refusal to follow the judgement of the Supreme Court, which takes immediate effect.”
It’s victory well deserved —NULGE
Also commending the verdict, the National Union of Local Government Employees, NULGE, described it as a victory for workers and all residents of the third tier of government.
National President of NULGE, Mr Ambali Kazeem, said: “We appreciate God Almighty, President Bola Tinubu, the incorruptible justices of the Supreme Court, the President of Nigeria Labour Congress, NLC, Joe Ajaero; his Trade Union Congress of Nigeria, TUC, Festus Osifo, the media and other social partners who stood by us in the long struggle. It is a new dawn for local governments across the country. We are indeed very grateful.
“By next week, especially on Thursday, we will organize a solidarity rally to celebrate this victory in Abuja. We are indeed very happy and grateful. Local Government Autonomy is an idea whose time is now.”
Return LGA funds or face legal action, SERAP tells 36 govs, Wike
On its part, the Socio-Economic Rights and Accountability Project, SERAP, has urged Nigeria’s 36 governors and the Minister of the Federal Capital Territory, Abuja, Mr Nyesom Wike to account for and return the local government funds which they have collected over the years.
SERAP, in a statement by its Deputy Director, Kolawole Oluwadare, said: “We applaud the Supreme Court for this groundbreaking decision which will end the persistent alleged misappropriation by several of trillions of Federal Account Allocation Committee, FAAC or public funds meant for local governments.
“Implicit in the Supreme Court judgment is the requirement for the governors and FCT minister to immediately account for and return the funds meant for local governments but retained and used or allegedly misused by them.
“The National Assembly must urgently amend the provisions of Section 162 of the Nigerian Constitution 1999 (as amended) to ensure that local government allocations from the Federation Account are directly paid to local government areas and not collected by governors and FCT.’’
Judgement, a setback on true federalism —Ibori
Faulting the verdict of the apex court, former Governor of Delta State, Chief James Ibori, yesterday, said that the financial autonomy granted to local government councils has dealt a severe setback on the principles of federalism.
Reacting on his X handle, Ibori said: “Supreme Court has dealt a severe setback on the principle of federalism as defined by section 162(3) of the 1999 Constitution (as amended).
“The court’s ruling on the matter is an assault on true federalism. The Federal Government has no right to interfere with the administration of Local Governments under any guise whatsoever. There are only two tiers of government in a federal system of government.
“I’m opposed to fiddling with the allocations to the Joint LG Accounts at the state level but that in itself does not call for this death knell to the clear provisions of section 162 of the constitution. The implications of the ruling are far-reaching.
“In the coming days, we will begin to fully understand the implications of the Supreme Court decision. An assault on the constitution is not the answer to fiddling with the Joint LG Account. If the ruling is saying Governors cannot tamper, touch, or fiddle with the Joint Accounts, that’s fine because they shouldn’t be doing that in the first place.
“It is my sincere hope that the judgement delivered will be reviewed at the earliest time possible because it stands the concept of federalism on its head.”
LP, CUPP welcome S-Court judgement
Also, the Labour Party, LP, and the Coalition of United Political Parties, CUPP, yesterday, commended the Supreme Court’s decision granting financial autonomy to Local Government Councils and the Federal Capital Territory.
LP’s National Publicity Secretary, Mr Obiora Ifoh, said the Supreme Court judgement has removed a yoke from the necks of local councils thus giving them greater freedom to initiate and complete projects which will reduce suffering at the grassroots.
Ifoh, in a chat with Vanguard, said: “It (judgement) is a welcome development. What Nigerians now expect is for local governments to take up the challenge of their newfound independence to ensure prudent management of public funds that will be given to them to make the lives of ordinary citizens meaningful.’’
Speaking in a similar vein, the National Secretary of the CUPP, Chief Peter Ahmeh said: “By this judgment, the suffering masses have been unshackled financially from the shackles of the governors who have been holding them hostage since 1999 as a result of their warped interpretation of Section 162(6) of the 1999 Constitution as Amended.”
It’s victory for democracy— MBF
Also reacting, the Middle Belt Forum, MBF, yesterday, expressed satisfaction the Supreme Court verdict, saying it is a victory for democracy, victory for Nigeria and all Nigerians.
The MBF, in a statement by its National President, Dr Bitrus Pogu, said: “The ruling was a beautiful victory for democracy. The President does not have to be tied down by the bottlenecks created by the Governors.
“I believe that there is going to be development in rural areas; and serious people will now come out and contest to be Chirmen and Councillors in the Local Governments and by so doing we will get the best materials for Local Government administration in this country.”
[Vanguard]