The Supreme Court, Thursday, declared that it is unconstitutional for state governors to hold onto funds meant for Local Government (LG) administrations.
The apex court consequently directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.
Justice Emmanuel Agim, in his lead judgment, noted that the 774 local government councils in the country should manage their funds themselves.
He dismissed the preliminary objections of the defendants (state governors).
The Court observed that the refusal of state government on financial autonomy for local governments has gone on for over two decades.
Justice Agim said local governments has since stopped receiving the money meant for them from the state governors who act in their stead.
In the suit filed by the Attorney-General of the Federation (AGF), Lateef Fagbemi, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils. The suit by the AGF was on 27 grounds.
Justice Agim said the AGF has the right to institute the suit and protect the constitution.
