Supreme Court Defiance: FG to Punish States Disobeying Supreme Court's LG Autonomy Verdict



FG Moves to Sanction States Defying Supreme Court's LG Autonomy Ruling


Currently, 164 local government areas across eight states are yet to hold elections...

Nigeria's Local Government Autonomy: Supreme Court Ruling Implementation Underway. Learn about the Federal Government's 10-member committee and the impact on Nigeria's 774 LGAs.




The Nigerian Federal Government has vowed to review state laws governing local government elections and investigate delays in conducting these elections in some states. Attorney General Lateef Fagbemi made this announcement in Ekiti on October 21, reaffirming the government's commitment to implementing the Supreme Court's ruling on local government autonomy.


Currently, 164 local government areas across eight states are yet to hold elections. This situation has sparked concerns, and President Bola Tinubu is expected to take action on the Supreme Court ruling by the end of October. The affected local government areas risk losing their federal allocations if the ruling is enforced.


Highlights: 

Review of State Laws: The Federal Government will review state laws governing local government election

Investigation into Delays: Delays in conducting local government elections in some states will be investigated.

Supreme Court Ruling: The Federal Government is committed to implementing the Supreme Court's ruling on local government autonomy.

Consequences of Non-Compliance: Affected local government areas may lose federal allocations if the ruling is enforced.


Eight states in Nigeria, including Ondo, Osun, Katsina, Cross Rivers, Nasarawa, Abia, Ogun, and Zamfara, have Local Government Areas (LGAs) without elections. Here's the breakdown:

  1. Ondo State: 18 LGAs
  2. Osun State: 30 LGAs
  3. Katsina State: 34 LGAs
  4. Cross Rivers State: 18 LGAs
  5. Nasarawa State: 13 LGAs
  6. Abia State: 17 LGAs
  7. Ogun State: 20 LGAs
  8. Zamfara State: 14 LGAs


The Supreme Court recently ruled that governors' retention of funds allocated to local councils under the State and Local Government Joint Account is illegal and unconstitutional. This decision aims to grant financial autonomy to local governments.


However, state governors have expressed opposition to enforcing this ruling, despite the 10-member inter-ministerial committee's upcoming report on implementing local government autonomy. This opposition may hinder the progress of granting financial independence to local governments.


The federal government has threatened to sanction states that defy the Supreme Court ruling, emphasizing the need for compliance with the law. This development highlights the ongoing struggle for local government autonomy in Nigeria.


The committee led by Secretary to the Government of the Federation, George Akume, was expected to submit its report on local government autonomy by October 13. However, no updates have been provided on the report's status.


In a recent development, Anambra State Governor, Prof. Chukwuma Soludo, expressed concerns about granting full autonomy to Nigeria's 774 Local Government Areas (LGAs). He warned that this move could lead to “humongous chaos” and might not result in sustainable development . This statement came after Soludo signed the Anambra State Local Government Administration Law.


Soludo's concerns highlight the ongoing debate about local government autonomy in Nigeria. Some argue that autonomy would enable LGAs to manage their resources more effectively, while others, like Soludo, worry about potential chaos and ineffective governance.


Concerns Raised by Prof. Soludo:

Humongous Chaos: Soludo believes granting full autonomy could lead to uncontrollable instability.

Unsustainable Development: He doubts whether autonomous LGAs can achieve sustainable development.

Governance Challenges: Soludo may be concerned about the capacity of LGAs to govern effectively.


It's essential to consider these concerns and weigh them against the potential benefits of local government autonomy.


The Federal Government took a significant step towards implementing the Supreme Court's ruling on local government autonomy by establishing a 10-member inter-ministerial committee on August 20. This committee is tasked with overseeing the enforcement of the ruling, which grants financial autonomy to local governments in Nigeria.


The Supreme Court of Nigeria made a groundbreaking ruling on July 11, 2024, granting financial autonomy to all 774 Local Government Areas (LGAs) in the country. This historic decision stripped governors of their power to control funds meant for these councils, declaring it illegal and unconstitutional. A seven-member panel, led by Justice Emmanuel Agim, not Justice Garba Lawal, delivered the judgment, emphasizing that LGAs should independently manage their finances.


The court's directive was clear: the Accountant-General of the Federation must ensure that LG allocations are paid directly into their respective accounts. This move aims to prevent the 36 states from withholding funds, which the court deemed unconstitutional. The Minister of State for Defence, Dr. Bello Muhammed Matawalle, welcomed this verdict, calling it a significant milestone in promoting grassroots development, good governance, and democratic decentralization in Nigeria.


Implications of the Supreme Court Ruling:

Financial Autonomy: LGAs can now manage their finances independently.

Direct Accountability: LGAs are directly accountable to their electorates.

Grassroots Development: Local governments can prioritize projects benefiting their communities.

Reduced Political Interference: State governments can no longer influence LG decisions.


This ruling is expected to deepen democracy and bring governance closer to the people, allowing citizens to hold their local governments accountable.


The Federal Government took a significant step towards implementing the Supreme Court's ruling on local government autonomy by establishing a 10-member inter-ministerial committee on August 20. This committee is tasked with overseeing the enforcement of the ruling, which grants financial autonomy to local governments in Nigeria.


Key Members of the Committee:

  • Minister of Finance: Wale Edun
  • Attorney General: Fagbemi
  • Minister of Budget and Economic Planning: Abubakar Bagudu
  • Accountant-General of the Federation: Oluwatoyin Madein
  • Governor of the Central Bank of Nigeria (CBN): Olayemi Cardoso
  • Permanent Secretary of the Federal Ministry of Finance: Lydia Jafiya
  • Chairman of the Revenue Mobilisation Allocation & Fiscal Commission: Mohammed Shehu
  • Representatives from state governor local governments


The committee was inaugurated by Secretary to the Government of the Federation, Senator George Akume, who emphasized the importance of enforcing the Supreme Court's judgment delivered on July 11, 2024. This move demonstrates the government's commitment to granting financial autonomy to local governments and promoting democratic governance at the grassroots level.


“The absolute autonomy to the 774 Local Government Areas in the country is impossibility. In fact, it is a recipe for humongous chaos. The attendant challenges before the issue of local government autonomy are such that would certainly deepen the fate of the system and spell doom for the expected beneficiaries of the process if not well planned,” Soludo stated.


Attorney General of the Federation, Lateef Fagbemi, stressed the importance of implementing the Supreme Court's ruling during a speech in Ado Ekiti, Ekiti State's capital, on Tuesday. He emphasized that the implementation is crucial, but clarified that he would reserve further comments until he has thoroughly reviewed the law. Fagbemi questioned the notion of rewriting the Supreme Court's judgment, stating, “Are they going to re-write the judgment of the Supreme Court? When we get the full tenure of their law, we will take appropriate action.”


Fagbemi also addressed claims that state governments were granted a three-month moratorium before implementing the Supreme Court ruling that granted autonomy to local governments, and rejected these claims. This development highlights the ongoing debate about local government autonomy in Nigeria, with some states yet to hold local government elections, including Ondo, Osun, Katsina, Cross Rivers, Nasarawa, Abia, Ogun, and Zamfara. The Supreme Court's ruling aims to grant financial autonomy to local governments, but state governors have expressed opposition to enforcing this ruling.


“Unfortunately I know it has been in the media, that they were given three months, which is not the position. The position is that, yes, the judgment was delivered, but we felt that there is a need to put some things in place before the full implementation. That it is going to be implemented is sacrosanct, nobody can run away from it,” the AGF said.


“The question is, are there some things we need to put in place such that we will not run into problems when we start the full implementation of the judgment of the Supreme Court?”


He added, “There is no moratorium, moratorium for what? You know that before now, some states have slated their elections for beyond October.


“What we want to look at is, were they genuine when they said they were fixing the election beyond October? When did they first moot the idea? What is the law of their state, however imperfect it may be? What does the law of the state say?


“For instance, in the conduct of elections in some states, they will give six months' notice. If they don't do that, we know that no matter the kind of election you conduct, the court will nullify it. If we now say we just want to go the whole hog, then there will be a problem.


“We don't want to go back to square one, that is why we are treading cautiously, otherwise I am saying categorically that there is no moratorium for anybody. I know that one or two states that are trying to commit contempt of court.”


In June 2019, the Nigerian Financial Intelligence Unit (NFIU) introduced a regulation under former President Muhammadu Buhari's administration to curb financial mismanagement at the local level. This regulation prohibited transactions involving State and Local Governments Joint Accounts, ensuring funds were deposited directly into local government accounts, with daily cash withdrawal limits set at N500,000. Non-compliant banks faced penalties. However, the Nigerian Governors' Forum opposed this move, forcing the NFIU to backtrack.


The Federal Government, represented by Attorney General Lateef Fagbemi, recently filed a lawsuit challenging governors' authority to withhold federal allocations meant for Local Government Areas (LGAs). Fagbemi argued that the constitution mandates democratically elected local governments, prohibiting alternative governance structures like caretaker committees. This lawsuit aims to prevent state governors from dissolving elected local councils unilaterally.


Developments:

NFIU Regulation (2019): Prohibited joint account transactions, ensured direct funding of local governments, and limited daily cash withdrawals.

Nigerian Governors' Forum Opposition: Led to NFIU backing down.

Federal Government Lawsuit: Challenges governors' authority to withhold LGA allocations and unilaterally dissolve elected councils.




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