Supreme Court Ruling on LG Fund: Afenifere lauds Court, FG

says direct allocation should not make LGs appendages of the federal government

The pan-Yoruba socio-cultural and socio-political organization, Afenifere, has commended the federal government and the Judiciary over last Thursday’s ruling that affirmed local governments’ right to the fund accruing to them from the Federation Account.

The commendation was contained in a Press Statement signed by the organisation’s National Publicity Secretary, Comrade Jare Ajayi.

It would be recalled that the federal government, through the Minister of Justice, Prince Lateef Fagbemi, SAN, in May this year, instituted a case at the Supreme Court seeking a stoppage to State Governors literally holding the local government councils in their areas by the jugular.

In the judgement read by Honourable Justice Emmanuel Agim, the apex court conceded that “the Federation can pay local governments allocations directly to the local governments or through the states.” But the Court asserted that “since paying them through the states has not worked, justice demands that local government allocations from the federation account should henceforth be paid directly to the local government”.

Justice Agim then declared matter of factly, that “the states’ retention of local government funds is unconstitutional”.
The ruling also outlawed the appointment of caretaker Committee’s, rather than elected officials, to run the affairs of local government councils.

“Afenifere salutes the Federal Government under President Bola Tinubu for instituting this case, salutes the judiciary for the landmark judgement and congratulates Nigerians because the ruling is returning control to them as against the prevailing situation which the governors have been manipulating to deprive the people of control at the local level”.

Ajayi went further to clarify that local governments getting their allocations directly from the Federation Account does not mean that they are attached to the apron of the Federal Government.

“Those holding this position need to be reminded that the local governments, like other tiers of government, are entitled to the funds in the federation account. The constitution states that federal allocations must be disbursed in this ratio: 52.68 % to Federal; 26.72 to States and 20.60% to Local Governments.”

Afenifere spokesman asserted that since this is a Constitutional provision, “no tier of government should withhold or corner the allocation meant for another tier. If it happens, such a thing can be challenged in the court. And, as we have witnessed in the recent past, the courts would normally rule in favour of the litigant”.

Ajayi added that a President can not use the excuse that local governments get their allocations directly from the Federation Account to erode their relative independence as guaranteed in the constitution.

“The fact that states get their allocations directly from the federation account does not make them appendages of the Federal Government. By the same token, the fact that local governments are to get their respective allocations from the same federation account would not make them appendages of the federal government. Any local government chairman that kow tows to Abuja simply because his council’s allocations come from Abuja is being servile and is ignorant.

Allocations from the federation account is not a favour. It is a right to each of the three tiers of government as prescribed by the 1999 Constitution”.
Afenifere lauded Justice Agim and his colleagues for acknowledging the constitional position on Joint Account.

“Note ought to be taken of a point stressed by the Honourable Justice to wit: joint account being supposedly run by the state and local governments is not the only means through which the third tier of government can get their funds.

“It is a moot point that in every part of the world that cares for good governance, every tier of government is entitled to its own shares of the federation’s resources. The Constitution saddles the local government with a lot of responsibilities. But these responsibilities can not be carried out without access to resources. In addition to funds coming from the central purse, they should also be relatively free to generate their own revenues.

Meaning that the sources of generating local revenues that were usurped by state governments should be returned to the local governments”.
Afenifere also praised the court for outlawing non-democratically elected officials to run local government councils adding that it is against ‘democratic norm’.

“As is well-known, Afenifere is vigorously agitating for the restructuring of the country in such a manner that constituent entities in the country would be in a position to control their respective affairs within the ambit of a federation. States would have necessary control over the affairs within their respective states just as the local governments too would have control over their respective places. In other words, powers and functions of each tier of government, including the local governments, should be constitionally guaranteed.

Such powers include the right of the people to elect those who would govern them and to have inputs into how resources in their localities are appropriated” the statement maintained.