The Supreme Court has ruled that state governments in the country should stop receiving, holding and spending funds allocated for the 774 local government areas in the country.
It directed the federal government to pay funds allocated to Local Governments directly to the respective Local Government Areas which are managed by democratically elected officials.
The judgment delivered by Justice Emmanuel Agim on Thursday declared that it is unconstitutional for State Governments to withhold and utilise allocations meant for Local Government Areas without transferring the funds to them, as mandated by Section 162(3) of the Constitution.
The ruling aims to ensure that Local Governments Councils receive their rightful allocations while promoting decentralization and grassroots development across the country.
The suit which led to the landmark judgement was filed by the Attorney General of the Federation, Fagbemi who asked for full autonomy for the local government areas in the country.
The federal government asked the Supreme court to ban state governors from interfering unnecessarily in the affairs of local government councils by arbitrarily dissolving democratically elected local governments.
It also asked the apex court to stop state governments from having joint accounts with local governments describing such actions as unlawful and a violation of the provisions of the Constitution.
The Federal Government asked the Supreme Court to stop State Governors from forming Caretaker Committees to directs the affairs of local governments because such action and violates the provisions of the Constitution.
It also sought for an injunction stopping state governors, their agents, and privies from receiving, spending or tampering with funds released from the Federation Account for the benefit of local governments in states without a democratically elected local government system.
