On July 11, the apex court declared that it is unconstitutional for state governors to hold onto funds meant for LG administrations.
Five weeks on, the Secretary to the Government of the Federation (SGF), Senator George Akume, set up the inter-ministerial committee to implement the verdict.
Disclosing this in a statement on Tuesday, the Director of Information and Public Relations in the Office of the Secretary to the Government of the Federation, Segun Imohiosen, said Akume would chair the committee.
Other members joining Akume are the Minister of Finance and Coordinating Minister of the Economy; Attorney General of the Federation and Minister of Justice – Member; Minister of Budget and Economic Planning; Accountant General of the Federation; Governor, Central Bank of Nigeria CBN; Permanent Secretary, Federal Ministry of Finance; Chairman, Revenue Mobilization Allocation and Fiscal Commission; Representative of State Governors; and, Representative of Local Governments.
“The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments,” he said.
“This move is in line with President Bola Tinubu’s efforts to give appropriate implementation to the provisions of the Constitution, which recognizes local governments as the third tier of government.”
In his judgement, Justice Emmanuel Agim said the Attorney General of the Federation has the right to institute the suit and protect the constitution
The apex court consequently directed that Local Government allocations from the Federation Account should be paid directly to them henceforth, and not to state government coffers.
Justice Agim pointed out that the state governors’ retention of the monies meant for the Local Governments truncates the latter’s activities.
Justice Agim ordered the immediate compliance of the judgement, stating that no state government should be paid monies meant for Local Governments.
There are 774 local government areas in the country but the efficiency of the third tier of government has been hampered by the weight of some controlling and overbearing governors who have been accused of mismanaging funds meant for the administration of local governments.
In the last few months, calls for local government autonomy have increased in Nigeria. President Bola Tinubu also supported the calls. In May, the Federal Government, through the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds.
Currently, the Federal Government gets 52.68%, and states get 26.72%. In comparison, LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).
Interestingly, LG funds are paid into a joint account operated by state governments and local governments in their domains.
In the suit filed by AGF, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils. The suit by the AGF was on 27 grounds.
The 36 state governors, who are defendants in the suit, opposed the AGF for instituting the case.
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