FG Threatens Contempt Suit Against Governors Over LG Autonomy Non-Compliance

The Federal Government warns state governors opposing Local Government autonomy, stating it may take legal action for contempt of constitutional orders.

Prince Lateef Fagbemi (SAN), the Attorney General of the Federation and Minister of Justice, has strongly warned state governors who are not complying with the Supreme Court’s ruling on local government autonomy. He cautioned that if this defiance persists, he would consider filing a contempt of court lawsuit against them.

Fagbemi delivered this statement on Thursday during the 2024 annual conference of the National Association of Judiciary Correspondents held in Abuja. On July 11, 2024, the Supreme Court issued a landmark judgment affirming financial autonomy for Nigeria’s 774 local government areas and prohibiting governors from controlling funds designated for local councils. The court also directed that allocations to local governments be paid directly into their accounts by the Accountant-General of the Federation, ruling that states’ failure to remit these funds was unconstitutional.

In another case (SC/CV/343/2024), Fagbemi successfully obtained an order that prohibits governors from disbanding democratically elected local government councils and appointing caretaker committees in their place. The Supreme Court’s panel, consisting of seven members, unanimously supported the suit filed by the Federal Government to strengthen the autonomy of local governments.

More than five months have passed since the ruling, yet the Federal Government has not initiated direct payments to local governments. Finance Minister Wale Edun cited “practical impediments” as reasons for the delay and mentioned that a committee is evaluating the feasibility of implementing the judgment. The government faces challenges in executing this decision, especially regarding salary payments and maintaining operational sustainability.

Governor Seyi Makinde of Oyo State voiced his concerns about the judgment, calling for a solution that is specifically designed to meet local needs and prevent hardship among citizens. He maintained that although adherence to the law is essential, states should aim for solutions that do not adversely affect the public. In response, some state governments have advanced legislation aimed at circumventing the Supreme Court’s ruling.

On October 8, 2024, the Anambra State House of Assembly approved the Local Government Administration Bill 2024. The bill faced criticism from civil society groups and opposition parties as it requires all federal allocations for local governments to be deposited into a “State Joint Local Government Account.” Additionally, it obliges local governments to transfer a state-determined percentage of their funds to a consolidated account within two business days after receiving their allocations. Members of the Labour Party in the assembly opposed this legislation, asserting that it contravened a Supreme Court ruling.

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Governor Chukwuma Soludo, despite facing opposition, enacted the bill into law on October 15, 2024. He justified the legislation by arguing that granting complete autonomy to local governments might result in disorder and impede progress. According to Soludo, this law aims to promote transparency and coordination among different government tiers while aligning with and not undermining the Supreme Court’s decision.

Unlike Anambra, the Nasarawa State House of Assembly approved a bill on October 14, 2024, to reorganize the local government system in accordance with the Supreme Court’s ruling. Governor Abdullahi Sule signed this legislation into law on November 4, 2024. The newly enacted law eliminates both the state’s joint account and the Ministry for Local Government and Chieftaincy Affairs, ensuring compliance with the Supreme Court’s decision.

On October 9, 2024, the Senate voiced its approval of the Supreme Court’s ruling and criticized governors attempting to pass laws mandating local governments to deposit funds into joint accounts. The Senate called on all government levels to adhere to this decision and decided to work alongside the House of Representatives in amending the 1999 Constitution for comprehensive implementation. Senate President Godswill Akpabio emphasized that an amendment is needed for Section 162, Subsection 6 of the Constitution—which created the State/Local Government Joint Account—to ensure full enforcement of this judgment.

At the judiciary correspondents’ conference, Fagbemi noted that certain states were acting in ways contrary to the Supreme Court’s ruling. He reiterated the Federal Government’s dedication to upholding compliance with the court’s decision.