By Jane Okafor, Abuja
The Supreme Court on Thursday declared as unconstitutional, the practice by state governors to hold funds allocated to Local Government administrations.
In its lead judgement read this morning by Justice Emmanuel Agim, the Supreme Court held that the 774 local government councils in the country should manage their funds by themselves.
The apex court made the pronouncements in its judgment in the suit filed by the Attorney General of the Federation (AGF) seeking full financial autonomy for the LGAs.
The Supreme Court also ordered the Federal Government to pay any money standing to the credit of the Local Governments in the Federation directly and only to the Local Government Areas managed by democratically elected officials.
The apex court noted tha 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.
By implications, it bars the FG from paying allocation to LGAs where there are only caretaker chairmen instead of democratically elected council chairmen and legislators.
“A democratically elected local government is sacrosanct and non-negotiable,” the court said.
The court ruled that state governments are perpetuating a dangerous trend by hindering democratically elected local government councils to function with the appointment of their loyalists as Caretaker chairmen who can only be removed by them
The 36 state governments, through their attorneys general, had filed a counterclaim to challenge the suit, arguing that the Supreme Court lacked the jurisdiction to hear the case.
However, delivering the judgment on the matter on Thursday, Justice Agim held that the AGF has the legal authority to initiate the lawsuit and uphold the constitution.
Justice Agim said, “I hold that the plaintiff’s request is hereby approved and all the reliefs granted.”
