In a landmark decision, the Supreme Court has prohibited governors across Nigeria from retaining or using funds allocated to the 774 Local Government Areas (LGAs) in their states.
The ruling declares such actions illegal and unconstitutional, emphasizing that funds designated for LGAs must be directly disbursed to them from the federation account.
Delivering the lead judgment, Justice Emmanuel Agim asserted that the long-standing practice of governors withholding LGA funds violates Section 162 of the 1999 Constitution.
The court clarified that state legislatures have no authority to enact laws that interfere with LGA finances.
Furthermore, the Supreme Court deemed unconstitutional the appointment of caretaker committees by governors to oversee LGAs, affirming that democratic governance must prevail at the grassroots level.
The decision marks a significant step towards ensuring financial autonomy and democratic accountability within Nigeria’s local governance structure.
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