The 36 federation governors are no longer permitted by the Supreme Court to keep or use cash intended for the 774 Local Government Areas, or LGAs, around the nation.
The highest court declared that governors’ continued receipt and seizure of monies allotted to local government units (LGAs) in their states is unlawful and unconstitutional.
It said that Section 162 of the 1999 Constitution, as amended, was violated by the “dubious practice,” which has persisted for over 20 years.
The Supreme Court ruled in Justice Emmanuel Agim’s lead opinion that no state’s House of Assembly has the authority to enact legislation that would in any way tamper with funds intended for the local government areas.
The Supreme Court ruled that funds intended for the LGAs must be given to them directly from the federation account immediately, emphasizing that the law required that LGAs be managed by democratically elected individuals.
It also ruled that the governors’ nomination of caretaker committees to manage the LGAs’ operations was unlawful.
According to the ruling, the 36 states must guarantee democratic governance at the third level of government.
