LG Autonomy: Lawyers react to Supreme Court’s policy that now allows 774 LGAs directly receive 21% FAAC Allocations, others 

Story Highlights 

  • Nigerian lawyers support the Supreme Court’s decision, citing it as a move to strengthen local government autonomy and curb corruption. 
  • The decision is pivotal for grassroots development and accountability, potentially empowering local governments to operate independently. 
  • Supreme Court had ordered the direct allocation of FAAC funds to 774 local government areas, bypassing state control. 

Nigerian lawyers have reacted to the policy-making-powers of the Supreme Court of Nigeria which was recently deployed on Thursday following its order that the allocations standing to the credit of the 774 local government areas in Nigeria in the federation account be “henceforth paid directly” to their respective accounts by the federal government.  

The Supreme Court had given its verdict following the federal government’s suit which sought to stop the governors of 36 states from spending or tampering with 20.6% allocation from the federation account to local government areas, among other reliefs targeting LG autonomy.  

In an exclusive interview with Nairametrics, prominent legal practitioners they shared their views on the reasoning and powers of the apex Court to intervene in disputes between the federal government and the states.  

Supreme Court verdict on LG autonomy 

In the suit marked SC/CV/343/2024, the Attorney General of the Federation and Minister of Justice (AGF), Prince Lateef Fagbemi (SAN), argued that in the face of the clear provisions of the 1999 Constitution, the governors have failed and refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state. 

But the Attorneys-General of at least 33 states were unanimous in asking the Supreme Court to strike out the suit by the AGF for lacking the legal right to commence the legal action.  

However, in the lead judgement of the apex Court, read by Justice Emmanuel Agim, he stressed that the allocations to joint state, LG accounts were merely a procedure that was adopted in the past, adding it was not the intention of the makers of the 1999 Constitution for governors to retain the funds due to the LGAs.  

As it is, the states, after collecting the local government allocations from the federation account, have continued to refuse to pay it to their owners. 

“The state’s refusal to pay this money to the local governments has gone on for over two decades now. This has deprived the local governments of their rights and defeated the intention of the 1999 Constitution,” Agim stated while approving direct FAAC allocation payments to the LGs.  

The apex Court also barred the state governors or state assembly from invalidating democratically elected LG councils.  

What Nigerian lawyers are saying 

Public interest lawyer, Micheal Okejimi, in an exclusive interview with Nairametrics, said that aside from the Supreme Court being a policy Court according to the law, in the instant case, there are other provisions of the law where the apex Court can purposely interpret it to find a leeway for the benefit of the country.  

He said though the 1999 Constitution provides that the allocations of any money standing to the credit of the local governments would be allocated in accordance with any act as prescribed by the National Assembly, the same Constitution also provided that this money will be paid to the state for the benefit of those local government councils.  

However, he added that the apex Court can leverage its powers as a policy Court to interpret the law by looking at all its provisions and giving it meaning for the benefit of the country.  

Okejimi added that “even if the 1999 Constitution has not specifically said that the money should go directly to these local government council; when you now consider other provisions of the Constitution that the allocations is for their benefit of the local government,” this is where the powers “that the Supreme Court is a policy Court comes in.”  

Joe Agi (SAN),  also in an exclusive interview with Nairametrics, believes that the Supreme Court is a policy court that ought to intervene to strengthen the Nigerian democracy 

He congratulated AGF Fagbemi for demonstrating the courage to take up the matter at the Supreme Court.  

According to him, the Supreme Court decided on the yearnings of the Nigerians at the grassroots level by making the recent pronouncement.  

First, it has been the yearning of the entire nation, the people, that they should allow local government to breathe. And so, for them to take that matter, I salute the courage.  

“And for the Supreme Court to put their stamp on it, it’s a laudable decision. And if you ask me again, it will deepen our democracy, ” Agi said.  

He explained that the judgement would help chairmen of local governments to start up their own programs for the LGs, contrary to what was obtained in the past where they served the interests of the governors. 

He added that the decision will help bring development at the grassroots level as well as a fast anti-corruption drive against corrupt LG chairmen since the Constitution did not give them immunity.  

And much more; if the EFCC or security agencies are investigating a local government for fraud, they have no immunity.  They will go after them right there and then and that will make them to be responsible and act within the ambit of the law and serve their people. Any local government who fools around will be in for it, ” he said.  

For real estate and public interest lawyer, Barrister Pelumi Jacob Olajengbesi, the Supreme Court is the final Court that has the authority to make laws.  

When the Supreme Court talks about a thing and declares that this is the position, that is it.  

“So my advice is that all parties should just comply with what the Supreme Court has said so that the country can move forward.  

 

“The judgement will strengthen governance and democracy, generally. And you see, this decision is not a small decision. What the Supreme Court has done is to properly establish local autonomy and give them the authority to operate properly, ” Olajengbesi told Nairametrics in an exclusive interview.  

On his part, Constitutional lawyer, Festus Ogwuche told Nairametrics in an exclusive interview that the Supreme Court judgement as a policy Court is in line with what it had stated and restated in the past regarding true federalism.  

He said the Supreme Court intervention is aimed at stopping the corruption between the states and the LGAs.  

That ( autonomy) is what the 1999 Constitution says, it is simply that people do not want to abide by the provisions of the Constitution, they prefer to disrespect it and they are not punished for it that is why so many governors prefer appointing technical committee in elective positions.  

“We have not been following the Constitution, what has been happening at the local governments is imposition and the hijacking of the LG system by the governors who use their cronies to man it so that from there, they steal the money allocated to the LG every month,” he said.  

Mike Ozhekome(SAN), in his statement shared with Nairametrics, also stated that the supreme court judgement directing the Federal Government to pay allocations due to Local Government Areas directly to their account has now abolished the old practices of State-Local Government Joint Account.  

He stated that section 162 of the Constitution provides for a joint State-Local Government Account for onward distribution between states and LGAs but what has been happening is that the state governors have been way laying local governments funds along the way and thus impoverishing LGAs leaving them with nothing to work with.  

According to him, the Supreme Court is constitutionally empowered to save the situation as a policy court.  

I agree totally with the judgement of the supreme court to grant full financial autonomy so that money is released and paid directly to the 774 local government councils which constitute the third-tier of government, to develop their places because the LGAs are grass-rooted and nearest to the people, ” he stated. 

He explained further that the decision would give the LGAs the independence they need to develop.  

The states take not only that which belongs to the states but also waylays at source that which is meant for the local government areas. No Nation grows that way,” he said.  

The Supreme Court has jurisdiction to hear and determine issues between the FG and states. 

The states and LGAs have been operating a joint account over the years but the AGF said that payments to the LGAs should be made directly to its separate accounts. 

There has been an outcry from the LGAs regarding financial autonomy. 

The suit was a constitutional matter and sought interpretation from the apex court. 

In the current FAAC allocation system, the Federal Government gets 52.68%; states receive 26.72%, and local governments are given 20.6%. 

Speaking to the press on Thursday, Association of Local Governments of Nigeria (ALGON), Director General,  Itiako Ikpokpo said the Nigerian people will enjoy the benefits of good governance at the grassroots, and that “the people will hold chairmen accountable because the funds are going directly to them and I think that it is time for us to move this discussion forward.” 


Source: TheTimes.com.ng.