The Supreme Court judgment on Thursday, July 11, granting financial autonomy to the 774 local government areas in Nigeria has been widely commended by Nigerians.
This is as Nigerians have expressed fears that the governors, who may not give up easily, might find another means of diverting council funds.
The judgment reinstated the powers to the local government areas across the nation by mandating that financial allocations from the federation account be channeled directly to them.
It is believed that this would effectively curb the authority of state governments to remove local government executives at will.
The Attorney General of the Federation, AGF, and Minister of Justice, Lateef Fagbemi (SAN), had earlier filed a legal suit against the 36 state governors, seeking full autonomy and direct funds allocation to the 774 local governments in the country.
He had prayed the apex court to make an order that funds of local governments being run by caretaker committee chairmen appointed by governors instead of elected chairmen and councillors should be withheld.
The AGF had also asked the apex court to grant all the reliefs sought by the Federal Government and grant the local governments full autonomy as the third tier of government in Nigeria as stipulated in the 1999 constitution.
He prayed the court to order the direct allocation of funds from the federation account to the local governments, even as he also sought an order prohibiting the unlawful dissolution of local government administration and the state governors’ appointment of caretaker committees to run the councils.
The suit was hinged on 27 grounds that the Constitution of Nigeria recognises federal, state and local government as three tiers of government.
It also averred that the three recognised tiers of government, draw funds for their operation and functioning from the federation account created by the constitution.
The originating summons read: “That by the provisions of the constitution, there must be a democratically elected local government system and that the constitution has not made provisions for any other systems of governance at the local government level other than the democratically elected local government system.
“That in the face of the clear provisions of the constitution, the governors have failed and refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state.
“That the failure of the governors to put a democratically elected local government system in place is a deliberate subversion of the 1999 Constitution, which they and the President have sworn to uphold.
“That all efforts to make the governors comply with the dictates of the 1999 Constitution in terms of putting in place a democratically elected local government system has not yielded any result, and that to continue to disburse funds from the federation account to governors for non-existing democratically elected local governments is to undermine the sanctity of the 1999 Constitution.”
The AGF asked the apex court to invoke sections 1, 4, 5, 7 and 14 of the Constitution to declare that the governors and state houses of assembly are under obligation to ensure democratically elected systems at the third tier.
But, the 36 state governments, represented by their attorneys general, opposed the suit on various grounds, including their contention that the Supreme Court lacked jurisdiction to entertain the suit. All the states opposed the suit and prayed the Supreme Court to dismiss it.
However, on Thursday, the seven-man panel of Supreme Court Justices, in the judgment delivered by Emmanuel Agim, declared that the 774 local government councils in the country should manage their funds themselves, maintaining that the power of the government was portioned into three arms of government, the federal, the state and the local government.
However, in the last three days that the judgment was delivered, Nigerians from all walks of life, including ethnic nationality groups, labour unions, eminent lawyers, and ordinary Nigerians, have been commending the judgment.
A Senior Advocate of Nigeria, SAN, Prof. Mike Ozekhome, described the judgment as timely and courageous, noting that by the decision, money would now be made available directly to the local government areas.
His position was contained in a statement he released after the judgement.
He said: “What the judgement has done is more like interpreting section 162 of the Constitution, which provides for a joint State-Local Government Account. In which case, money is normally paid to state governors’ accounts and then for them to disburse to the local governments for them to share.
“But what has been happening is that, as I noted in 2020, over three years ago, the state governors have been behaving like ‘bandits,’ waylaying local governments funds along the way, and thus, impoverishing them, and leaving them with nothing to work for, just a little for salary, and nothing to actually work for the people whom they represent.
“I agree totally with the judgment of the supreme court to grant full financial autonomy so that money is released and paid directly to the 774 local government councils, which constitute the third-tier of government, to develop their places because the LGAs are grass-rooted and nearest to the people.
“Rather than allow overbearing state governors to throw their weight around and muzzle the local governments and seize their purse, they will now allow LGs breathe some air of freedom.
“If you take a look at our situation, Nigeria is operating a very lopsided federation, more like a unitary system of government. Where the Federal Government is supposed to be a small government, it is controlling 67 items on the exclusive legislative list.
“That is why the Federal Government gets the lion share of the federation account up to the tune of 52.68 percent.
“The states get 26.72 percent, while the entire 774 local government councils in Nigeria get just 20.60 percent of the monthly allocation by the Revenue Mobilization Allocation and Fiscal Commission, RLASMC.
“The question is: what is the Federal Government doing with almost 53 percent of the national income? That is because it is a government that is behemoth and elephantine; a government that intrudes and intervenes in areas that should not concern it at all.
“What is the Federal Government’s business with licensing cars and trucks for states? What is its business with the Marriage Act, dealing with how people marry and wed in Nigeria and how they live together as husband and wife and separate or divorce?
“What is the Federal Government’s business with unity schools; FG operating secondary schools? What is their business? Why is the FG not allowing states to generate their own power, operate their own railway stations, if they have the capacity?
“Why should the Federal Government not allow states to have their own police force? Even for the local governments to have their own police force as we have in the United States and other advanced countries of the world where even tertiary institutions have their own police?
“The truth is that the Federal Government is over bloated and over pampered. That is why it is using too much money and making the centre become too attractive, eating deep into funds that ought to be meant for the states and local government areas.
“The states take not only that which belongs to the states, but also waylay at source that which is meant for the local government areas. No nation grows that way.
“So, I see this judgment as epochal, having a far-reaching effect because money will now be made available directly to the local government areas, which will no longer be subservient, like fawning slaves to state governors.”
For the Nigeria Labour Congress (NLC), the judgment is a triumph for the nation’s democracy.
NLC President, Joe Ajaero, described the judgment as courageous and transformative, saying, “We, at the Nigeria Labour Congress, wish to commend the Supreme Court of Nigeria for restoring power to the local governments.
“Its 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 also our hope in democracy.
“Not a few believe the stunted national growth or development and the overwhelming surge in crimes and threats to our collective good is directly tied to the seizure and paralysis of local governments by state governments.
“The journey to the local governments’ freedom has been a tortuous one. For years, we have watched with dismay and discontent, the remorseless and mindless erosion of the powers of the local governments, and embarked on a series of national protests as workers.
“We also note the effort made by the Buhari administration to remove the strangle-hold of governors on local governments. We must also mention the commendable role on this matter by the 9th Assembly.
“We pay tribute to the Tinubu government for its presence of mind to institute this action at the Supreme Court. We specifically commend the President and the Attorney General of the Federation.”
Ajaero noted that, henceforth, the focus should shift towards ensuring smooth implementation without any sabotage.
“This brings us to the conduct of elections at local governments. Elections by the State Independent Electoral Commission, SIECS, have been anything but fair.
“The true freedom of the local governments, in our view, must also come from those who govern them. Should SIECS be allowed to conduct elections or should the Independent National Electoral Commission, INEC, take over, even as they are over-burdened and are not exactly the best example?
“Should there be a regulatory agency or commission with an oversight over SIECs? We will find the devil in the details through a stakeholders’ conversation.
“Finally, the freedom of local governments will be nothing if those who will take charge end up behaving badly like their predecessors in power. Thus, there is need for a self-purgation or a national rebirth as laws or court pronouncements alone may not be enough,” he said.
Also for the Igbo youths, under the aegis of the Coalition of South East Youth Leaders, COSEYL, the judgment was a landmark that would deepen the nation’s democracy.
President General of the group, Goodluck Ibem, said it has returned governance to the people in line with the vision of the 1999 constitution.
“All governors should immediately conduct local government elections in accordance with the Supreme Court Judgement and the constitution of the Federal Republic of Nigeria.
“We call on the National Assembly to amend the constitution to ensure that the Independent National Electoral Commission, INEC, conducts Local Government elections.
“The amendments should include that the tenure of LG Chairmen must be three years as enshrined in the constitution.
“We call on the Economic Financial Crime Commission, EFCC, ICPC, NFIU and other anti-crime agencies to monitor all allocations to the local governments to ensure that their funds are being used for the purpose and benefit of the people.
“No local government chairman should allow himself to be intimidated by their governor to handover the people’s money to him. The Chairmen should know that they are only accountable to the people,” Ibem said.
Concerns, fear
Much as Nigerians across all divides have commended the judgment, there is growing concern and fear that the governors might resort to subtle threat to obtain money from the local government chairmen, thereby defeating the purpose of the judgment.
Those on this divide are arguing that if the conduct of the local government elections are still left for the governors, using the State Independent Electoral Commission, SIEC, they would still handpick and install their cronies and puppets as LG chairmen.
It is the thinking of those who hold this view that the National Assembly should move a step further to make a law that would hand over the conduct of local government elections to the INEC.
One of the proponents of this view is Mr Anthony Ugwuoke, a public affairs analyst.
He said: “The only way to make the joy of Nigerians complete over this judgment is for the National Assembly to make a law removing the power to conduct local government elections from the SIECs to the INEC.
“This is because if SIECs are allowed to do that, the governors will make sure that only their candidates emerge, and by doing so, they will still be in control of the LG funds.”
There is also a call on the National Assembly Joint Committee on the Review of the 1999 Constitution to legislate a uniform tenure and election for the local governments across the country.
This was amplified by the National President of the Nigerian Bar Association, Yakubu Maikyau, during the opening of a two-day retreat for members of the National Assembly Joint Committee on Constitution Review, the 36 state Houses of Assembly Speakers, and the judiciary in Lagos.
He argued that a uniform tenure of office and election for local government executive would enhance grassroots government and strengthen the country’s democratic experience.
There is also a belief in some quarters that with this judgment in place, it is now time for the Nigerian Financial Intelligence Unit, NFIU, to track the council funds and prevent their diversion to state governors by council chairmen.
A Lagos based lawyer, Mr Marcellus Onah noted that strict adherence to the NFIU guidelines would prevent any diversion of funds to state governors by local government chairmen.
He said: “Any person that wants to tamper with the local government funds should be ready to go to jail.
“Governors are not only doing it because they have immunity, they are also doing it because the money goes through them to the local governments.
“Now that the money is going directly to the local government account, no governor will ask the chairmen to rewire the money to them.
“I know that some governors would want to try by using subtle threats on the LG chairman, but once the chairmen are aware of the NFIU guidelines, they can stand their grounds and nothing will happen.”
The Association of Local Governments of Nigeria, ALGON as well as the National Union of Local Government Employees, NULGE, are equally asking the NFIU to brace up for the job ahead, as they have also expressed concern that the governors might not want to give up the fight so easily.
