In this report, ADELANI ADEPEGBA highlights the Supreme Court’s attempts to bridge the gap between the theory and practice of Nigeria’s federalism amid the clamour for the restructuring of the country
For years, local governments in Nigeria have struggled under the heavy hand of state governors, who, wielding significant control over local councils, have often undermined their autonomy. This control manifested in various ways, including the dissolution of elected councils, the appointment of caretaker committees, and the manipulation of local government funds through the State Joint Local Government Account.
These practices have stifled local governance, inhibited development, and disenfranchised citizens at the grassroots level. The over-centralisation of power perpetuated inefficiencies and corruption.
In a decisive move, the Supreme Court last Thursday set the councils free from the yokes of the governors, granting them financial autonomy. The court declared the governors’ retention of local government funds as a violation of the 1999 constitution. The ruling upholds the constitutional guarantee of a system of local government by democratically elected councils, as enshrined in section 7 of the 1999 Constitution.
The judgment mandates that local governments should receive their funds directly from the Federation Account, bypassing state governments.
Justice Emmanuel Agim, who read the lead judgment, declared, “I hold that the state’s retention of the local government funds is unconstitutional.
“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.
“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs.”
This decision curtails the financial stranglehold that state governments have exercised and aims to prevent the mismanagement and diversion of funds meant for local development.
The direct allocation of funds to local governments marks a significant shift towards financial independence. With control over their finances, local councils can better plan and execute development projects, ensuring that resources are utilized effectively for the benefit of their communities. This financial autonomy is expected to reduce bureaucratic delays and enhance service delivery.
The court reinforced that elected local government councils cannot be dissolved arbitrarily by state governors. This protection ensures that local councils remain accountable to their electorates and operate independently of state political manipulations.
By safeguarding the tenure of elected local councils, the Supreme Court’s ruling strengthens democratic governance at the grassroots level. Local governments are now expected to function with greater independence, free from the constant threat of dissolution and interference. This autonomy is crucial for fostering a more accountable and responsive local administration.
Freed from the constraints of state control, the councils are better positioned to address the specific needs and priorities of their communities. This localized approach to governance is likely to result in more targeted and efficient development initiatives, improving the overall quality of life for residents.
The Supreme Court’s ruling reinforces the principles of federalism by ensuring a more equitable distribution of power among the different tiers of government. This balance is essential for maintaining the integrity of Nigeria’s federal structure and promoting national unity.
President Bola Tinubu welcomed the verdict, saying, “It affirmed the spirit, intent, and purpose of (Nigeria’s) Constitution on the statutory rights of local governments.”
According to him, a fundamental challenge to the nation’s advancement over the years has been ineffective local government administration, as governance at the critical cellular level of socio-political configuration is nearly absent.
In a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale, the President emphasised that the onus is now on local council leaders to ensure that the broad spectrum of Nigerians living at that level are satisfied that they are benefitting from people-oriented service delivery.
He said, “The Renewed Hope Agenda is about the people of this country, at all levels, irrespective of faith, tribe, gender, political affiliation, or any other artificial line they say exists between us. This country belongs to all of us.
“By virtue of this judgment, 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.”
Predictably, the development has attracted reactions across the political divide. Former Vice President Atiku Abubakar described the ruling as “A win for the people of Nigeria” and a step in the right direction.
In a statement released on Thursday via X, Atiku criticised the earlier arrangement, stating that it was borne out of “Politics of hasty compromise.”
The Labour Party in a statement by its Secretary, Obiorah Ifoh, said, “We, at the Labour Party welcomed the Supreme Court decision granting financial autonomy to local government councils in the 36 States of the federation including the Federal Capital Territory. This decision was long in coming but as the saying goes, it is better late than never.’’
The Nigeria Labour Congress and the National Union of Local Government Employees also lauded the judgment.
However, the advocates of restructuring are not satisfied with the apex court ruling which they argued was an erosion of true federalism. For them, it is restructuring or nothing and no token attempts at a political shift would satisfy them.
The pan-Yoruba socio-political association, Afenifere, which has been advocating a total overhaul of the nation’s political and administrative structure dismissed the apex court verdict. In a statement on Saturday, its leader and the National Public Secretary, Chief Ayo Adebanjo, and Prince Justice Faloye, described the apex court judgement as a mere judicial conspiracy.
According to the group, the judgment was against the principle of true federalism. It added that the Supreme Court played to the gallery in delivering such a judgment. It maintained that the only way forward for the country was to practice true federalism.
“Afenifere insists that the way forward for Nigeria is not the confusing rudderless tinkering but a holistic restructuring of the polity to re-enact the fundamental principles of true federalism as agreed by the founding fathers.
‘’This includes the fact that the local government system is an exclusive preserve of the states, either by direct constitutional provisions or residual powers in a federation,” the group noted.
While the Supreme Court’s decision is a significant victory for local government autonomy, several challenges remain. Ensuring the effective implementation of this ruling will require vigilance and commitment from all stakeholders.
Beyond the judicial victory, local governments must enhance their administrative and financial management capacities to effectively utilise their newfound autonomy. Training and capacity-building initiatives would be crucial in this regard. Mechanisms should therefore be established to monitor the use of funds and ensure transparency and accountability at the local level.
Experts said the National Assembly and State Houses of Assembly should enact supportive legislation to further entrench local government autonomy and prevent any future attempts to undermine it.
In this regard, the Nigeria Union of Local Government Employees and the Association of Local Governments of Nigeria have urged the Nigerian Financial Intelligence Unit to track council funds and prevent their diversion to state governors by council chairmen.
The President of NULGE, Akeem Ambali, who cautioned against disobedience of the judgment, called for strict adherence to NFIU guidelines, adding that it would help prevent the diversion of funds.
Ambali noted that only those who had misappropriated council funds and those opposed to democratic principles would be dissatisfied with the verdict, stating that Nigerians are happy with the landmark judgment of the Supreme Court.
He said, “The whole country is happy with the judgment of the Supreme Court. It is only looters of local government funds and unpatriotic people that will not be happy.
“What we have seen is constitutional democracy at play. Funds were appropriated and allocated to local governments. Why must it be hijacked along the line? That is why we have a high rate of poverty, frustration, insecurity, and joblessness across the country.
“We (NULGE) believe that once local government is free, council chairmen will be able to touch the lives of average workers and the masses and change things for good. That’s our impression about it.”
He observed that the verdict would help transform governance at the grassroots.
‘’Ordinarily, the allocation for local governments has been cornered, diverted, and misapplied over time. What I believe is that once they have access to the allocation, they will be able to provide the infrastructure for the people. They will be able to provide responsive governance to their communities and pay the minimum wage conveniently.
“We are aware that since the removal of fuel subsidy, local government allocation has been increased by over 100 per cent by the state and federal governments. So, there is no fear about that,” the NULGE president further noted.
ALGON vowed to use the opportunity of its financial autonomy to address insecurity and lack of good roads at the grassroots, while also ensuring people in rural areas enjoy more dividends of democracy.
The National President of ALGON, Aminu Muazu-Maifata, said the association appreciates the verdict of the Supreme Court.
He said, “’ALGON will meet next week to deliberate on the positive development, assuring that the council chairmen would utilise the landmark verdict of the Supreme Court to transform governance at the grassroots.
He said, “I assure Nigerians that we won’t disappoint them. We will meet their expectations. By next week, we will call a NEC meeting, which will be held between the 18th and 19th of this month. All the 36 state ALGON chairmen and the FCT chairman will be at the meeting.
‘’We will state our positions and expectations on this verdict. Before then, we might have gotten the full details of the judgment. That will give us a good opportunity to explain the verdict and come out with good positions.
“We know the mood of the masses and that of the majority of Nigerians on this issue. We will know how to persuade our principals about it. We are not going to face any challenge from the governors because of the way we are going to approach the whole issue and the way we are going to relate with them.”
