In a landmark decision, the Supreme Court of Nigeria has declared that the country’s 774 local government areas (LGAs) shall henceforth enjoy full financial autonomy, freeing them from the financial shackles of state governments.
The apex court’s ruling directs that local government allocations from the Federation Account be paid directly to the LGAs, bypassing state government coffers.
In its lead judgment, Justice Emmanuel Agim stated, “State governments have been refusing financial autonomy to local governments for over two decades.” The court’s decision is a significant victory for the LGAs, which have long been advocating for greater control over their finances.
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This ruling comes on the heels of a lawsuit filed by the Federal Government in May against the 36 state governors, alleging misconduct in the management of local government funds. The Supreme Court’s verdict is a resounding affirmation of the LGAs’ right to manage their own affairs.
As the nation’s highest court, the Supreme Court has sent a clear message: “Local government councils should manage their own funds.” This decision is expected to have far-reaching implications for grassroots development and democratic governance in Nigeria.
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