In a landmark judgment delivered on Thursday, July 11, 2024, the Supreme Court of Nigeria has ruled that the Federal government should directly pay allocations to local government councils from the federation accounts. This decision comes as a response to concerns over the alleged abuse and misconduct by state governments in the administration of Local Government Areas (LGAs).
The case, marked SC/CV/343/2024, was filed by the Federal Government against the governors of the 36 states. The government, represented by the Attorney-General of the Federation (AGF) and Minister of Justice, sought recognition of LGAs as an autonomous third tier of government. Additionally, they requested an end to the arbitrary and unlawful dissolution of democratically elected LG administrators by state governors.
The suit also called for a change in the handling of LG funds, advocating for direct allocation from the Federation Account to the LGAs, as opposed to the current practice of governors creating joint accounts. The AGF argued that this aligns with the provisions of the Constitution and prevents governors from misusing or tampering with funds meant for LGAs.
The Supreme Court Of Nigeria decision aims to promote transparency, accountability, and good governance in local government administration. By ensuring direct payment of allocations, the ruling seeks to empower LGAs to effectively utilize resources and deliver services to their communities.
This judgment also prohibits state governors from constituting caretaker committees to run local government affairs, emphasizing the importance of adhering to the constitutionally recognized and guaranteed system of elected LG administrators.
The implications of this ruling are significant. It not only addresses concerns over the abuse of power by state governments but also reinforces the autonomy and importance of LGAs within the governance structure. Directly allocating funds to LGAs will enable them to carry out their responsibilities, promote grassroots development, and improve service delivery to citizens.
As this ruling takes effect, it is crucial for all stakeholders to collaborate and work towards its successful implementation. The Federal Government, state governments, LGAs, and citizens must uphold the principles of transparency, accountability, and good governance to ensure the effective utilization of resources and the overall development of the nation.
In conclusion, the Supreme Court’s order for the direct payment of allocations to local government councils marks a significant step towards strengthening local government administration in Nigeria. This decision promotes transparency, accountability, and autonomy at the grassroots level, ultimately benefiting the citizens and contributing to the nation’s development.
Let us embrace this ruling as an opportunity to build a more effective and responsive local government system that works for the betterment of all Nigerians.



