The Supreme Court today delivered judgement in the suit of Federal Government of Nigeria versus the 36 States Governors over financial autonomy to the the LGAs. In a landmark judgement, the apex court granted financial autonomy to local government areas, LGAs, and orders that allocations should be paid directly to the LGAs from the Federation Allocation Account Committee, FAAC
In their ruling, the 7-man panel with Justice Lawal Garba presiding declares that sections 162, (4, 5 and 6) of the 1999 Constitution as amended did not provide for the existence of a joint account for both States and LGAs.
President Bola Tinubu |
In the lead judgement read by Justice Emmanuel Agim, the apex court holds that the provision of the Constitution that LG funds be sent to the States is for them to act as agents of the Federal Government for onward disbursement of the funds to the LGAs
It affirmed that the States are therefore not required to hold on to the money and use and holds that by doing so they are abusing the role assigned them by the 1999 Constitution as amended.
The Supreme Court thus submitted that the LGAs have the sole right to control their funds
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