Supreme Court Ruling on Local Government Autonomy Sparks Debate

Oluwasegun SanusiJuly 11, 20242 Mins read122

The earlier reported ruling by the Supreme Court has ignited a contentious debate over the autonomy of local governments.

The earlier reported ruling by the Supreme Court has ignited heated debates over the autonomy of local governments.

The ruling, delivered by a seven-member panel led by Justice Emmanuel Agim, supports direct financial allocations from the federal government to local governments, bypassing state authorities.

This decision is seen as a landmark shift in governance dynamics at the grassroots level.

The case originated from a suit filed by the federal government to strengthen local governments’ financial independence by ensuring they receive their allocations directly from the Federation Account.

State governors have always controlled these funds through State Joint Local Government Accounts, often withholding or mismanaging allocations intended for local development.

Critics of the Supreme Court’s decision argue that it undermines the constitutional provisions outlined in Section 162(3) of the 1999 Constitution, which mandates the distribution of funds among federal, state, and local governments.

They contend that the ruling centralises federal power and erodes states’ autonomy, which are traditionally responsible for local government affairs.

James Onanefe Ibori, former governor of Delta State, expressed concerns on X over the implications of the ruling, stating, “An assault on the constitution is not the answer to fiddling with the Joint LG Account.”

He emphasised the potential chaos and governance friction that could arise from direct federal intervention in local finances.

‘’I’m opposed to fiddling with the allocations to the Joint LG Accounts at the state level but that in itself does not call for this death knell to the clear provisions of section 162 of the constitution, ‘’ he wrote.

“In the coming days, we will begin to understand the implications of the Supreme Court decision fully. An assault on the constitution is not the answer to fiddling with the Joint LG Account. If the ruling says governors cannot temper, touch, or fiddle with the Joint Accounts, that’s fine because they shouldn’t be doing that in the first place. But asking the Federal Government to pay Local Government allocations to the account of the Local Government directly will lead to utter chaos and avoidable friction in governance,” he

Conversely, In a statement on X, Atiku Abubakar, former vice president of Nigeria, welcomed the Supreme Court’s decision as a progressive step towards empowering local governments.

He hailed the ruling as a correction to past political compromises that hindered local development, advocating for greater fiscal autonomy from federal allocations and internally generated revenue.

The verdict has sparked broader discussions on the interpretation of federalism in Nigeria’s governance structure and the judiciary’s role in balancing power between different tiers of government.

It remains to be seen how states and local governments will adapt to the new financial dispensation mandated by the Supreme Court.

Recall that Governor Sim Fubara had announced the dissolution of chairmen of local government councils in Rivers State and the constitution of the caretaker committees to administer the councils.

In some other states, local governments are administered by caretaker committees composed of the governors.