The Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, has welcomed Thursday's Supreme Court ruling affirming the financial autonomy of local governments in Nigeria.
The ruling is a historic victory for the 774 local government areas, freeing them from the oppressive control of state governors, Fagbemi said while addressing journalists at the State House in Abuja on Thursday.
Mr Fagbemi expressed his satisfaction with the verdict and noted the widespread public approval.
“I call it the ‘local government emancipation ruling’ because it really frees local governments from the restrictions of the past. I hope local government officials will take this opportunity to develop their areas,” Fagbemi said.
Question of autonomy of local governments
For more than two decades, governance of most of the 774 local governments – the third and closest level of government to the grassroots – has been virtually paralyzed in most states as governors withhold federal appropriations that belong to them.
Traditionally, Federation Account funds intended for local governments have been released through state governments.
The AGF lawsuit, filed in May, sought to bolster the independence of local governments by ensuring they get their federal appropriations directly from the federal government, bypassing joint accounts controlled by state governors.
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Mr. Fagbemi argued that under Nigeria's constitution, only democratically elected local government executives can manage local government funds, not the caretaker committees that governors often create after arbitrarily dissolving elected officials.
The Supreme Court on Thursday upheld all of the Attorney General's requests, ordering the federal government to send federal allocations belonging to local governments directly to them.
The Supreme Court decision is expected to significantly alter local government governance and administration as it also prevented state governors from arbitrarily dissolving elected local government executives.
“The ball is in the governors’ court. The ruling is unequivocal as to their obligations and the repercussions of non-compliance, which take immediate effect,” Fagbemi said.
The governors speak
Anambra State Governor Charles Soludo welcomed the Supreme Court decision, describing it as a boon to popular development and poverty alleviation.
The Executive Governor of Anambra State, Charles Soludo. [PHOTO CREDIT: Facebook page of Mr Soludo]
Although he has not yet reviewed the full ruling, Soludo said it would help redirect resources to the local level.
“I haven't seen the full document, but I have excerpts. Fundamentally, we need resources to reach the grassroots and ensure that people's money is working for them at all levels, whether it's federal, state or local (government),” Soludo said.
He expressed his commitment to transparency and accountability in the use of public resources.
He also said that Anambra State was preparing to conduct local government elections.
“When I took office, I promised our people that there would be local elections. We have passed the Independent Electoral Commission Act to strengthen our institutions and we are preparing to organize those elections,” Soludo said.
Cross River State Governor Bassey Otu also praised the ruling.
Governor Bassey Otu of Cross River State. [PHOTO CREDIT: CrossRiverWatch]”I don't think anyone is opposed to development at the local government level. Although I have not read the full judgment, I am confident that its implementation will improve the administration of our local government,” Mr Otu said.
Atiku reacts
Former Vice President Atiku Abubakar described the verdict as “a victory for the people of Nigeria.”
Former Vice President, Atiku Abubakar. [PHOTO CREDIT: Official Facebook page of Mr Atiku.]He also said that the ruling is a step in the right direction and an important corrective action to grease the wheels of national development across the country.
Criticising the existing arrangement for funding local governments, Atiku said the disbursement of revenue from local councils into state government accounts was a decision that emerged from a policy of hasty compromise.
He added: “I also share the belief that fiscal autonomy of local governments should not be limited to revenues in the Federation Accounts, but should in fact apply to Internally Generated Revenues of the respective local government authorities.
“Many of our states, especially those in ultra-urban areas with high-density economic activities, have become notorious for preventing local councils from generating revenue in areas including car parks, outdoor advertising, rent and many more.
“The court’s verdict is in line with the Supreme Court’s basic functions as a court of arbitration between governments.”