In a landmark legal and political development, the Federal Government has filed a lawsuit against the 36 state governors of Nigeria at the Supreme Court, seeking to enforce full autonomy for local government councils as the third tier of government.
The Attorney General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi, SAN, initiated the suit, marked SC/CV/343/2024, in a bid to curtail what he describes as the unconstitutional interference by state governors in local government affairs.
The AGF is requesting the Supreme Court to issue an order prohibiting state governors from the “unilateral, arbitrary and unlawful dissolution of democratically elected local government councils.” He argues that such actions contravene constitutional provisions that guarantee local government autonomy.
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The suit also calls for an order mandating that funds allocated to local governments from the Federation Account be directly channeled to them, bypassing the controversial joint accounts managed by state governors. This direct funding is seen as crucial to ensuring the financial independence and effective functioning of local governments as envisaged by the 1999 Constitution.
Additionally, the AGF seeks an order stopping governors from constituting caretaker committees to run the affairs of local governments, arguing that this practice violates the constitutionally recognized democratic councils. He also requests an injunction restraining the governors, their agents, and privies from receiving, spending, or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected local government councils are in place.
The suit is predicated on 27 grounds, emphasizing that the Nigerian Federation, created by the 1999 Constitution, recognizes federal, state, and local governments as three tiers, each drawing funds for their operations from the Federation Account. The Constitution mandates a democratically elected local government system and does not provide for any other form of governance at this level.
The AGF contends that state governors have failed to establish democratically elected local government systems, even where no state of emergency has been declared to justify the suspension of democratic institutions.
“All efforts to make the governors comply with the dictates of the 1999 Constitution in terms of putting in place a democratically elected local government system have not yielded any result,” the AGF stated. “To continue to disburse funds from the Federation Account to governors for non-existing democratically elected local governments is to undermine the sanctity of the 1999 Constitution.”
The AGF has asked the Supreme Court to invoke Sections 1, 4, 5, 7, and 14 of the Constitution to declare that state governors and state houses of assembly are obligated to ensure a democratic system at the local government level. He also seeks a declaration that governors cannot lawfully dissolve democratically elected local government councils.
While the push for local government autonomy is viewed by some as a potential catalyst for good governance, it has also sparked concerns about the risk of increased corruption. Economist Kalu Ajah provided critical insight into the historical and practical challenges of local government administration in Nigeria.
“LGAs were primarily created by the military as a way to get oil money, not to develop rural areas,” Ajah explained. “Oil cash in Nigeria is shared via LGAs, so if I want a state to get more oil money, I (as a General) arbitrarily increase the number of LGAs that state has.”
He highlighted the disparity between Kano, which has 44 LGAs, and Lagos, with a larger population but only 20 LGAs.
Ajah suggested that for local government autonomy to be effective, funding should be based on performance metrics rather than direct allocations.
“LGAs should not receive direct FAAC funds but rather grants based on the actualization of HDI goals,” he proposed. “For example, the LGA gets a direct cash payment for every child who graduates from primary education. Same for immunization or reduction in waterborne illnesses.”
He added: “Simply paying cash to LGAs because they are LGAs is the most significant waste of wealth that has occurred in Nigeria.
“You can’t reform LGAs without reforming the premise of their creation.”
The Supreme Court has scheduled the hearing of the suit for May 30, setting the stage for a landmark decision that could reshape the governance structure at the local level in Nigeria. The outcome of this legal battle will have far-reaching implications for the balance of power between the federal and state governments and the future of local governance.
This legal confrontation, which highlights the ongoing faceoff between different tiers of government in Nigeria, raises critical questions about the best ways to achieve effective and accountable local governance in the country.