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*Bars Governors From Retaining, Utilising Councils' Allocated Funds
The Supreme Court on Thursday granted financial Autonomy to Local Government Areas across the country.
The apex court also barred the 36 governors of the federation from further retaining or utilizing funds that are meant for the 774 LGAs in the country.
It ruled that it was illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.
The court maintained that the practice was a clear violation of Section 162 of the 1999 Constitution (as amended).
In the judgement delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state had the power to make laws that could, in any manner, interfere with monies meant for the LGAs.
The court held: “Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.
“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs.”
It further declared unconstitutional the appointment of caretaker committees by governors to run the affairs of the LGAs.
It held that the 36 states were under obligation to ensure democratic governance at the third tier of government.
Earlier, the court dismissed preliminary objections the state governors filed to challenge the competence of the suit.
