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Home Headline Stories

Reactions Trail Supreme Court’s Verdict on LGs Financial Autonomy

Gbenro Adesina by Gbenro Adesina
July 11, 2024
in Headline Stories, Interview
Reading Time: 6 mins read
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Reactions Trail Supreme Court’s Verdict on LGs Financial Autonomy

Justice Emmanuel A. Agim

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Reactions for and against have continued to trail the judgement of the Supreme Court of Nigeria granting autonomy to the nation’s local government.

However, overwhelming majority of Nigerians agreed with the position of the court pointing out that the management of the local government funds by the state governors is a violation of the nation’s constitution.

In his reaction, President Bola Ahmed Tinubu hailed the Supreme Court judgement on local government autonomy, saying Nigerians, especially the poor, would be able to hold their local leaders to account.

Tinubu, through the presidential spokesman, Ajuri Ngelale, said, ““By virtue of this judgement, our people – especially the poor – will be able to hold their local leaders to account for their actions and inactions. What is sent to local government accounts will be known, and services must now be provided without excuses. My administration instituted this suit because of our unwavering belief that our people must have relief and today’s judgement will ensure that it will be only those local officials elected by the people that will control the resources of the people. This judgement stands as a resounding affirmation that we can use legitimate means of redress to restructure our country and restructure our economy to make Nigeria a better place to live in and a fairer society for all of our people.”

The President stated the Supreme Court’s decision to uphold the constitutional rights and ideals of local governments as regards financial autonomy, and other salient principles, is significant and further reinforces the effort to enhance Nigeria’s true federal fabric for the development of the entire nation.

Also, reacting, theNigeria Labour Congress (NLC), welcomed the Supreme Court’s judgment affirming fiscal autonomy for local government councils across the country.

In a statement, the NLC President, Joe Ajaero, said the apex court’s ruling is a restoration of hope in the country’s democracy and judiciary.

Ajaero asserted that the apex court’s verdict is “both courageous and salubrious” and recalled the “tortuous” journey to the local governments’ freedom.

According to him, “It’s an epochal pronouncement on Thursday, July 11, 2024, directing that financial allocations be made directly to Local Governments as well as divesting state governments of the power to remove local government executives is both courageous and salubrious. The Supreme Court, through this landmark judgment, has not only restored our democracy but possibly hope in democracy. For years we had watched with dismay and discontent the remorseless and mindless erosion of the powers of the local governments and had embarked on a series of national protests as workers.”

In the same direction, the former Vice President Atiku Abubakar described the Supreme Court’s judgment on the local government autonomy as “a win for the people of Nigeria” and a step in the right direction.

Expressing his support for the ruling, Atiku said, “I align with the decision of the Supreme Court that the structure of the Nigerian government is portioned in three layers, and of these, the local governments should be centres of development.”

Atiku also advocated for an expansion of fiscal autonomy beyond Federation Account allocations saying, “I also share the belief that fiscal autonomy to the local governments should not be limited to revenues from the Federation Accounts, but indeed, should apply to Internally Generated Revenue from the respective local government authorities.”

Former Kaduna lawmaker, Senator Shehu Sani, said the Supreme Court has freed the local governments from over two decades of captivity and systemic plunder by the states.

His words, ““The Supreme Court has freed the local governments from over two decades of captivity and systemic plunder by the states.”

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu said the judgement of the Supreme Court regarding the autonomy of local government allocations would reduce the reign of state governors as emperors.

Moghalu described the judgement of the Supreme Court as a correct verdict, adding that local government should be encouraged if Nigeria expects development.

He revealed this via a series of posts on his X page.

According to Noghalu: “The @SupremeCourtNg decision in favour of full autonomy (including direct financial allocation to LGs without passing through state Governors) is a correct one that accords with the Constitution of Nigeria in its present form.

“Local governments and local governance (and their accountability!) should be encouraged if we are to have any hope of development, and will become the next battleground. But it will empower the citizens of Nigeria in the context of democratic governance and reduce the reign of state Governors as “emperors”.

“All of this, however, does not address the core issues of federalism, which in general means two levels of sovereignty- central and sub-national, with sub-nationals (states or regions) creating local governments. Our “Third Tier” LGAs were created by fiat via military decree!

“India is the only major federal state I know where LGs are a constitutional third tier of government. These issues should be addressed in an organized national dialogue and negotiations on a new constitution for Nigeria.”

The Labour Party (LP), welcomed the judgement saying, “We at the Labour Party (LP) welcome the Supreme Court decision granting financial autonomy to Local Government Councils in the 36 States of the federation including the Federal Capital Territory.”

In a statement signed by the Party’s National Publicity Secretary, Obiora Ifoh, the party stated, “This decision was long in coming but like a saying goes, it is better late than never.

“It has put to rest the debate as to whether or not local government areas that are the closest level of government to the ordinary people deserve to enjoy some form of autonomy to address challenges facing the masses within their jurisdiction.

“We can now safely say local government areas now have greater freedom to initiate and complete projects which will reduce suffering at the grass roots.

“This autonomy comes with a huge responsibility on local government councils just as councillors now owe their constituents a duty to hold local government chairmen accountable by ensuring prudent management of their resources.

“The expectation of Nigerians from the local government administration now is simple.

“They each must now take up the challenge of this new found independence to ensure judicious use of public funds in their custody.

“We would also like to urge council chairmen not to see the additional inflow of public funds as an opportunity to engage in reckless spending and embarking on white elephant projects which can negate the whole essence of the financial autonomy granted them.

“However, a former Governor of Delta State, James Ibori described the full autonomy granted to local governments as “a severe setback on the principles of federalism.”

Ibori, in a post on X shortly after the judgment, expressed his disagreement with the verdict, arguing that the Federal Government has no right to interfere with the administration of local governments “under any guise whatsoever.

According to him, “There are only two tiers of government in a federal system of government. 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.”

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