By Damilola Olufemi
Federal vs State Power Struggle: Can Local Governments Autonomy?
In a landmark ruling, the Supreme Court on July 11,2024 ordered the federal government to bypass the state governments and directly pay revenue allocations to local government councils,yet this directive is mostly observed in the breach by some governors.
In this report, Damilola Olufemi who sought the views of experts on the issue,unveils the many challenges encountered in implementing the order, stressing that there are lots of advantages in obeying the court’s ruling.
The lawsuit which was instituted by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), sought to grant full autonomy and direct funding to all the 774 local government councils in Nigeria.
In its ruling, the apex court affirmed that states’ retention of local government funds is unconstitutional and was outlawed.
The Supreme Court verdict is aimed at promoting transparency and accountability in the administration of public funds.
Also, the ruling is a significant victory for local government autonomy and a major setback for state governments that have historically controlled local government funds for a very long time.
The apex court’s ruling emphasised the importance of direct funding for local governments, stressing “The demands for justice require a progressive interpretation of the law. It is the position of this court that the federation can pay local government allocations directly to the LGs or through the states.”
The court further stated that since payment through states has not worked, the justice of the matter demands that local government allocations from the federation account should henceforth be paid directly to them.
The implications of the ruling are far-reaching. By granting autonomy to local governments, the Supreme Court’s decision aims to ensure that funds intended for local governance are utilised effectively. This move is expected to promote grassroot development and reduce the influence of state governments on local affairs.
In the same vein,local governments will now have the freedom to prioritize their needs and allocate resources accordingly, without interference from state governments.
However, despite assurances from the Federal Government that local governments would start receiving direct allocations by January 2025,the implementation of the apex court ‘s verdict has been slow. There has been various hurdles put on way for the seamless implications of the court’s ruling .
Meanwhile, the Central Bank of Nigeria(CBN) recently introduced a new condition requiring all the 774 local government councils in the country to provide at least two years of audited financial reports before they can receive their allocations directly. This requirement has raised concerns among local government officials, who argue that it may delay the implementation of the Supreme Court’s ruling.
The delay in implementing the order has also raised concerns about the commitment of the Federal Government to ensure true local government autonomy.
Many stakeholders have expressed worries why the federal government has not taken concrete steps to ensure that local governments receive their allocations directly.
The lack of transparency and accountability in the allocation of local government funds has historically been a major challenge in Nigeria. The Supreme Court’s ruling was seen as a major step towards addressing this challenge, but the delay in its implementation has raised doubts about the government’s commitment to reforming the grassroot administration.
However, there are also concerns that the ruling could be resisted by state governments, which have historically controlled local government funds. Some state governments may try to find ways to circumvent the ruling or delay its implementation. This could lead to protracted legal battles, which could undermine the effectiveness of the ruling.
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Experts’ Opinions on the Verdict
Some legal experts and public commentators have weighed in on the implications of the apex court ‘s ruling.
Mr Emmanuel Akinola, a Public Affairs analyst, described the ruling as step towards ensuring that the dividends of democracy get to the grassroot.
He added, “This ruling is a significant milestone in promoting grassroot development, good governance, and democratic decentralization in Nigeria.”
The Kogi-based analyst further noted that the verdict will ensure that funds intended for local governance are utilised effectively and will promote transparency and accountability in the administration of public funds.
A lawyer, Barr. Ibrahim Lawal, however, decries the non implementation of the apex court ruling,saying that such an action runs against the tenets of democracy and is like taking the law for granted.
“This ruling is a victory for local government autonomy and a major setback for state governments that have historically controlled local government funds.
According to him, “this will reduce the influence of state governments on local affairs and give local governments the freedom to prioritise their needs and allocate resources accordingly.”
For Amaka Theophilus, the Supreme Court’s ruling is a significant step towards promoting transparency and accountability in government.
Sharing her view while speaking with New Daily Prime, Amaka noted that the ruling reflects the court’s commitment to upholding the principles of federalism and promoting good governance.
“However, the success of this ruling will depend on the ability of local governments to manage their finances effectively and provide essential services to their communities,” she said
In the same vein, a legal scholar expert, Adeola Aluko, stated that the ruling is expected to have a significant impact on the lives of ordinary Nigerians.
He further added that by ensuring that local governments receive their allocations directly, “the ruling is expected to promote grassroots development and improve the delivery of essential services such as healthcare, education, and infrastructure. However, there may be challenges in implementing this ruling, particularly from state governments that may resist the loss of control over local government funds.”
Notwithstanding the stated challenges, the Supreme Court’s ruling on local government autonomy is a significant milestone in Nigeria’s democratic journey. It reflects the court’s commitment to upholding the principles of federalism and promoting transparency and accountability in government. As Nigeria continues on the path of decentralisation, the success of this ruling will depend on the ability of local governments to manage their finances effectively and provide essential services to their communities.
The apex court’s ruling is also expected to have a significant impact on the lives of ordinary Nigerians. By ensuring that local governments receive their allocations directly, the ruling is expected to promote grassroots development and improve the delivery of essential services such as healthcare, education, and infrastructure. This, in turn, is expected to improve the overall.
