The Supreme Court’s recent affirmation of financial autonomy for Nigeria’s 774 local governments marks a pivotal step toward strengthening democracy and grassroots development. In a unanimous judgment, the seven-member panel upheld the suit brought by the federal government, emphasizing the need for progressive interpretation of the law to ensure justice and effective governance.
Historically, the Nigerian constitution permits the federal government to distribute local government allocations either directly to them or through the state governments. However, this mechanism has often led to state governments retaining local government funds, thereby crippling the autonomy and functionality of local governments. This long-standing issue has hindered development at the grassroots level, as local governments struggled with insufficient funds to execute essential projects and services.
Justice Agim, delivering the ruling, underscored the necessity of direct financial allocation to local governments. He stated, “Since paying them through the states has not worked, justice demands that local governments allocations from the federation account should henceforth be paid directly to the local governments. I hold that the states’ retention of local government funds is unconstitutional.” This landmark ruling mandates that funds standing to the credit of local government councils must be paid directly by the federation, bypassing the state governments. Furthermore, an order of injunction was granted to restrain state governments from collecting funds belonging to local government councils, particularly in the absence of democratically elected local government councils.
The Supreme Court’s decision empowers the Accountant-General of the Federation to disburse federal allocations directly to local governments, ensuring that these funds reach their intended destination without interference. This direct allocation is a significant shift that promises to revitalize local governments, enabling them to operate independently and effectively address the needs of their communities.
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, who filed the suit in May, has been instrumental in this transformative legal battle. The seven justices of the court, led by Garba Lawal, heard the suit on June 13 and reserved their judgment until now, culminating in a historic ruling that reinforces the autonomy of local governments.
Local governments constitute Nigeria’s third tier of government, the closest level to the grassroots. However, for over two decades, they have been nearly incapacitated by state governors who seized their federal allocations, releasing only minimal funds to keep them barely operational. This practice, facilitated by controversial joint accounts, allowed governors to exert absolute control over local governments, stifling their potential to drive local development.
The Supreme Court’s ruling addresses this systemic issue, paving the way for autonomous local governments that can effectively deliver good governance and spur community development. The autonomy of local governments is not merely a legal matter; it is crucial for the practical realization of democratic principles and the efficient functioning of a decentralized government.
In unitary nations, local government autonomy is recognized as essential for grassroots development. Nigeria, despite its federal structure, has long grappled with centralized control that hampers local progress. The need for autonomous local governments is indisputable, as no external authority can genuinely prioritize or dedicate sufficient time and resources to a community better than those residing within it.
Local government autonomy is also about finding a balance that enhances the delivery of good governance and the development of communities. It is a crucial element for a functional democracy, ensuring that local governments can independently manage their finances, education, policing, and development initiatives. This ruling is a significant stride towards achieving that balance and fostering a more inclusive and responsive governance structure in Nigeria.
The Supreme Court’s affirmation of local government financial autonomy is a monumental victory for democracy and grassroots development in Nigeria. It signals a new era where local governments can operate independently, directly receiving the funds necessary to drive sustainable development and improve the lives of their communities. This decision underscores the importance of local governance in delivering effective public services and enhancing democratic values across the nation.
