“The Federal Government has inaugurated a 10-member committee to enforce the Supreme Court judgment on local government autonomy, aiming to strengthen grassroots governance and decentralization.”
A 10-member committee has been established by the Federal Government to implement the latest Supreme Court decision that provides fiscal independence for local governments in Nigeria.
Funds meant for LG administrations cannot be held by state governors as it was deemed unconstitutional by the apex court on July 11.
The inter-ministerial committee was established by Senator George Akume, the Secretary to the Government of the Federation (SGF), five weeks after the verdict.
According to a statement released on Tuesday by Segun Imohiosen, the Director of Information and Public Relations for the Office of the Secretary to the Government of Federation, Senator Akume has been selected as chairman for this committee.
Akume will be joined by various other members including the Minister of Finance and Coordinating Minister of the Economy, Attorney General of the Federation, and Minister of Justice who is a member. Additionally, there will also be present, among others: The Minister of Budget and Economic Planning; Accountant General for Nigeria; Governor from Central Bank (CBN); Permanent Secretary representing Federal Ministry in charge with finance matters ; Chairman to oversee Revenue Mobilization Allocation & Fiscal Commission along with representatives respectively chosen by State Governors as well those selected within Local Governments.
He said that the main objective of the committee is to guarantee complete autonomy for local governments so they can operate proficiently without any meddling from state authorities.
The decision is in accordance with President Bola Tinubu’s aim to ensure the constitutional recognition of local governments as the third tier of government by executing appropriate measures.
Justice Emmanuel Agim ruled that the Attorney General of the Federation has both the authority to file a lawsuit and safeguard the constitution.
As a result, the highest court instructed that Local Government allocations from the Federation Account must be disbursed directly to them in future, rather than being directed towards state government funds.
Retaining the funds meant for Local Governments by state governors hinders their operations, Justice Agim emphasized.
Justice Agim mandated prompt adherence to the verdict and stipulated that funds designated for Local Governments should not be allocated to state governments.
Although there are 774 local government areas in the country, their effectiveness has been hindered due to certain governors who exercise excessive control and misappropriate funds designated for administering these areas.
Local government autonomy has become increasingly demanded by Nigerians in recent months, with President Bola Tinubu also showing support. However, the Federal Government filed a lawsuit against all 36 state governors in May for their alleged mishandling of local government funds through Attorney-General Lateef Fagbemi.
At present, the Federal Government receives 52.68% of the monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) under Presidential operation, while states receive 26.72%. In contrast, local governments are allotted only 20.60%, which is disbursed by the Federation Account Allocation Committee (FAAC).
Funds from LG are paid into a shared account managed by both state and local governments within their respective territories, which is quite intriguing.
The Federal Government filed a lawsuit through AGF requesting an order to prohibit the governors from randomly dissolving democratically chosen councils. The suit consisted of 27 grounds.
The AGF’s decision to file the suit was opposed by the 36 state governors, who are named as defendants in it.
