The Foundation for Environmental Rights, Advocacy, and Development (FENRAD) wholeheartedly welcomes the recent landmark decision by the Supreme Court of Nigeria barring state governors from holding and spending Local Government Area (LGA) funds. This decision marks a pivotal moment in the quest for enhanced transparency, accountability, and autonomy within the local governance framework in Nigeria.
FENRAD, as a human and environmental rights advocacy group based in Abia State understands the legal implications of this landmark judgement. It should be understood that this notion of illegality arose because of weak legal framework. Section 2 (2) of the constitution of 1999 as amended provides that: “Nigeria shall be a federation of thirty-six states and the FCT” without mentioning the local governments. Subnational governments at state level had created development councils out of impunity, overseen retention of revenue due to grassroots people, and imposed stooges thereto citing the section under review to claim that “the third tier of government is not a federating unit,” or that only the federal and state governments and the FCT are constitutionally recognised as federating units. This was the case when former Governor Aregboshola pleaded after creating what he called Local Council Development Areas (LCDAs).
Again, Section 7(1) stated that a system of democratically elected government within the local council areas are “guaranteed under this constitution.” Yet, the same section empowers the state to ensure the survival of the councils in their respective structures, finance, governance and composition. The result is strangulation and subsequent “death” of these areas under the watch of some governors. While it is not in contention that the Local Government Areas constitute the third tier of government, governors, acting as czars, have relied on defective sides of the constitution to thwart grassroots democracy. This is why FENRAD welcomes this judgement, as the Supreme Court retains the final power in matters like this. There had been executive orders hitherto, even financial directives and sundry laws by relevant authorities to enhance fiscal responsibility across the councils, but the governors had erected a brick wall against this. This is why, even though the judgement stripped the second tier of government of its constitutional rights (as enshrined in Section 7), it remains timeous and ideal in the interest of the federation and its democracy.
For years, state governors’ misappropriation and diversion of LGA funds have significantly hampered grassroots development. Local councils, which are the closest administrative bodies to the people, have often been deprived of the necessary financial resources to execute developmental projects and provide essential services. This has not only stifled local development but also eroded public trust in the governance structures meant to serve them.
The Supreme Court’s ruling is a reaffirmation of the constitutional mandate that LGAs must be autonomous entities, empowered to manage their resources independently. This autonomy is crucial for fostering a system where local governments can effectively address the unique needs of their communities, thereby promoting sustainable development from the grassroots up.
FENRAD believes that the proper administration and utilization of LGA funds will have far-reaching positive impacts. With direct access to their allocated funds, local governments will be better positioned to improve infrastructure, enhance social services, and implement community-driven projects. This will not only uplift the standard of living at the grassroots level but also stimulate local economies and create job opportunities.
Furthermore, this decision sets a precedent for good governance and accountability across all levels of government. It sends a clear message that financial mismanagement and the unlawful diversion of public funds will not be tolerated. This, in turn, is expected to foster a culture of integrity and responsibility among public officials, ultimately leading to more transparent and effective governance.
In light of this ruling, FENRAD calls on all state governors to comply fully with the Supreme Court’s decision and ensure the immediate release and appropriate utilization of LGA funds. We also urge the federal government and relevant oversight bodies to enforce this ruling rigorously and monitor its implementation closely.
FENRAD remains committed to advocating for policies that promote good governance, transparency, and sustainable development. We will continue to monitor the situation and work with relevant stakeholders to ensure that the benefits of this landmark decision are fully realized.
This ruling is not just a victory for the rule of law, but a triumph for the millions of Nigerians who rely on local governments for essential services and development. It is a crucial step towards building a more equitable, accountable, and prosperous Nigeria
