In a historic ruling, the Supreme Court has ordered the Federal Government to pay local government funds directly to the 774 local government councils, granting them financial autonomy. This landmark judgment puts an end to the long-standing practice of state governments controlling local government funds.
The apex court’s decision is a significant victory for local governments, enabling them to manage their finances independently and carry out their activities unhindered. Justice Agim emphasized that the state governors’ retention of local government funds has hindered the latter’s ability to function effectively.
The Supreme Court’s directive is clear: local government allocations from the Federation Account must be paid directly to the local governments, bypassing state government coffers. The judgment is effective immediately, and state governments are no longer entitled to receive funds meant for local governments.
This ruling is a significant step towards decentralization and empowering local governments to take charge of their finances and development. It is a major win for the 774 local government councils and a boost to grassroots governance in the country.
