Supreme Court judgment on LG autonomy, a setback –  Ibori

A former Governor of Delta State, James Ibori, has said that the Supreme Court judgment that granted full autonomy to local governments dealt “a severe setback on the principles of federalism.”

Ibori, in a post on X shortly after the judgment, expressed his disagreement with the verdict, referencing constitutional provisions to substantiate his claim that the decision undermines the foundations of federalism.

After an intense back and forth between the Federal Government and state governors, the Supreme Court ruled on Thursday that it is unconstitutional for governors to withhold funds earmarked for local government councils, paving the way for autonomy and direct funding for local governments.

Citing Section 162 (3) of the 1999 Constitution (as amended), Ibori said, “The section expressly provides thus:

“Any amount standing to the credit of the Federation Account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms and in such manner as may be prescribed by the National Assembly. Sections 6 provide further clarity on the subject matter.

“(6) Each State shall maintain a special account to be called ‘State Joint Local Government Account’ into which shall be paid all allocations to the Local Government Councils of the State from the Federation Account and from the Government of the State.”

The former governor said the Federal Government has no right to interfere with the administration of local governments “under any guise whatsoever.”

“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,” he stated.

Ibori noted that the ruling has far-reaching consequences for the federal-state power dynamic, as it enables federal interference in local government finances and thereby centralises power, “contrary to the principles of federalism.”

Ibori further argued that if the Federal Government is allowed to directly control local government funds, it may exploit this power to exert political pressure and manipulate local governments.

“This decision could set a precedent for further federal interventions in areas traditionally reserved for state governance, potentially leading to a more centralized system of government over time.

“That local governments must be ‘democratically elected’ goes without saying. Yes, I agree, that’s the position of the constitution but withholding their allocation is not the way to go. It’s wrong.

“In the coming days, we will begin to fully understand the implications of the Supreme Court decision. An assault on the constitution is not the answer to fiddling with the Joint LG Account,” he added.

In a landmark judgment delivered by Justice Emmanuel Agim, a seven-member panel of the Supreme Court ruled that the 774 local government councils in Nigeria have the constitutional right to manage their finances autonomously, without interference from state governments