In a landmark judgment delivered by Justice Emmanuel Agim on Thursday, the Apex court declared that it is unconstitutional for State Governments to withhold and utilise allocations meant for Local Government Areas without transferring the funds to them, as mandated by Section 162(3) of the Constitution.
The seven-man panel of Supreme Court Justices led by Justice Garba Lawal delivered the ruling on Thursday, July 11, 2024.
The Supreme Court ruled that the Nigerian Government must pay funds allocated to Local Governments directly to the respective Local Government Areas, which are managed by democratically elected officials.
This ruling aims to ensure that Local Governments receive their rightful allocations, promoting decentralisation and grassroots development.
The apex Court Initially heard the suit between the federal and State government on the autonomy of local government on June 13 and its reserved judgment.
The suit marked SC/CV/343/2024 was filed by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), and it sought full autonomy and direct fund allocation to the 774 local government areas (LGAs) in the country.
Fagbemi requested the Supreme Court to order that funds for LGAs managed by caretaker committees appointed by governors, rather than elected chairmen and councillors, be withheld.
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