The Supreme Court has ruled that state governors withholding funds designated for local government administration is unconstitutional.

This decision was articulated by Justice Emmanuel Agim while delivering the judgment in a suit filed by the Attorney-General of the Federation (AGF), Lateef Fagbemi, seeking to prevent governors from arbitrarily dissolving democratically elected councils.

In the lead judgment read by Justice Agim on Thursday, July 11, the apex court highlighted that state governments’ refusal to grant financial autonomy to local governments have persisted for over two decades. He stated that local governments have ceased receiving the funds intended for them, with state governors managing the funds instead.

Justice Agim emphasized that the 774 local government councils in Nigeria should manage their own funds. He dismissed the preliminary objections raised by the defendants, affirming the AGF’s right to file the suit and uphold the constitution.

Consequently, the court directed that local government allocations from the federation account be paid directly to the local governments henceforth.