The Adamawa State Government has sought clarity from the Supreme Court on revenue distribution from the Federation Account. The state government’s action centred on Section 162 (1), (2), and (3) of the Constitution challenges the current practices of revenue allocation and management by the Federal Government, which states that:
”The entire sum in the Federation Account must be distributed among all levels of government without deductions, except as permitted by law. The President must comply strictly with the Constitution in managing and distributing revenue. All revenue collected, except those exempted by the Constitution, must be paid into the Federation Account for distribution to all tiers of government. The Federal Government has no discretion to withhold or deduct revenue for any purpose not expressly permitted by the Constitution.”
The government outlined its arguments in a statement released by Humwashi Wonosikou, Chief Press Secretary to the Adamawa State Governor. They emphasise the need for transparency and adherence to constitutional provisions in revenue management.
It was reported that the Supreme Court strengthened the financial independence of the nation’s 774 local governments.
The judgment given today was presided over by a seven-member panel led by Justice Emmanuel Agim, allowing the local government councils to receive their allocations directly from the Accountant-General of the Federal Government of Nigeria.
In this vein, the Lagos State House of Assembly has invited the Attorney-General of the State, Mr Lawal Pedro, to appear before it to explain the Supreme Court judgement on local governments in the country, according to reports.
According to the Speaker of the Assembly, Rt. Hon. Mudashiru Obasa noted that there was a need for a better understanding of the decision of the Supreme Court about some provisions in the Constitution of the country.
“There is a need for us to seek clarification and understanding of this judgement. It will be good to invite the Attorney-General to brief us and give his understanding so that we do not run foul of the judgement,” Obasa noted.