The Supreme Court has held that henceforth, the Federal Government should pay any money standing to the credit of the Local Governments in the Federation directly to the Local Government Areas managed by democratically elected officials.
The apex court has also held that it is unconstitutional for State Governments to retain and use allocation meant for the LGAs on their behalf without transferring same to them as provided in Section 162(3) of the Constitution.
The apex court also barred the Federal Government from further paying LG allocations through the State Governments since the practice has been abused by Governors, who retain the funds and utilise them as they please to the detriment of the LGAd for which the monies are meant.
The pronouncements were made in the ongoing judgment of the Supreme Court in the LG autonomy suit filed by the Attorney General of the Federation (AGF), Lateef Fagbemi SAN on behalf is the Fed Govt.
It would be recalled that the federal government, through the Minister of Justice, Prince Lateef Fagbemi, in May this year, instituted a case at the Supreme Court seeking a stoppage to state governors literally holding the local government councils in their areas by the jugular.
In the judgement read by Honourable Justice Emmanuel Agim, the apex court conceded that “the Federation can pay local governments allocations directly to the local governments or through the states.”
But the Court asserted that “since paying them through the states has not worked, justice demands that local government allocations from the federation account should henceforth be paid directly to
The ruling also outlawed the appointment of caretaker Committee’s, rather than elected officials, to run the affairs of local government councils.
