Prof Fabian Ajogwu, a Senior Advocate of Nigeria (SAN), has described the Supreme Court’s judgment on Local Government autonomy as a triumph for fiscal federalism.
In its lead judgement read by Justice Emmanuel Agim, on Thursday, the apex court declared that it is unconstitutional for governors to hold on to funds meant for Local Government (LG) administrations.
Justice Agim said the refusal of the state government on financial autonomy for local governments has gone on for over two decades.
The apex court directed that Local Government allocation from the Federation Account should be paid directly to them henceforth.
Reacting in a statement, Ajogwu said, “The decision is a significant affirmation of the position of the law under the Constitution of the Federal Republic of Nigeria 1999, as amended, and it represents a crucial step forward for fiscal federalism in our nation. The bold action of the Attorney General of the Federation, Lateef Fagbemi (SAN), in filing the suit on behalf of the Federal Government, seeking to grant full autonomy and direct funding to all 774 local government councils in the country, is commendable.
“The autonomy of Local Government Councils is a cornerstone of effective governance and grassroots development. By upholding this principle, the Supreme Court has reinforced the importance of decentralisation and the empowerment of local authorities to manage their affairs independently. This judgment will undoubtedly enhance the capacity of Local Government Councils to deliver essential services, promote regional economic development, and improve the quality of life for citizens at the grassroots level.
“It is imperative that governors and all stakeholders respect and implement this decision. Adherence to the rule of law and the principles enshrined in our Constitution is fundamental to the stability and progress of our democracy. I urge all parties to embrace this judgment and work collaboratively to ensure that Local Government Councils can operate with the autonomy and resources necessary to fulfil their mandates effectively.
“This judgment is a victory for Local Government Councils and a triumph for fiscal federalism principles. It underscores the need for a more equitable distribution of resources and responsibilities among the different tiers of government, thereby fostering a more balanced and inclusive development across the country.
:The Supreme Court judgment affirming the autonomy of Local Government Councils in Nigeria has several significant implications for the governance structure in the country. These implications include a 10-point set of benefits, namely –
“Strengthening Decentralisation: The judgment reinforces the principle of decentralisation, ensuring that Local Government Councils have the authority and independence to govern their jurisdictions effectively. This can lead to more responsive and accountable local governance.
“Enhanced Service Delivery: With greater autonomy, Local Government Councils can better manage their resources and prioritise local needs. This can improve the delivery of essential services such as healthcare, education, infrastructure, and sanitation at the grassroots level.
“Fiscal Federalism: The decision supports the concept of fiscal federalism by allowing Local Government Councils to have greater control over their finances. This can lead to a more equitable distribution of resources and reduce the dependency on state governments for funding.
“Reduction of Bureaucratic Bottlenecks: Autonomy can help reduce bureaucratic delays and inefficiencies often associated with centralised control. Local governments can make quicker decisions and implement policies directly addressing regional issues.
“Empowerment of Local Leaders: The judgment empowers local leaders and councils, giving them the legitimacy and authority to govern effectively. This can enhance political participation and engagement at the regional level.
“Checks and Balances: By affirming local government autonomy, the judgment introduces an additional layer of checks and balances within the governance structure. This can help prevent the over-concentration of power at the state level and promote more balanced governance.
‘Legal and Constitutional Clarity: The judgment provides legal and constitutional clarity regarding the status and powers of Local Government Councils. This can help resolve disputes and ambiguities related to local governance and ensure compliance with constitutional provisions.
“Impact on State Governments: State governments must adjust to the new governance dynamics, respecting the autonomy of Local Government Councils. This may require changes in state policies, laws, and administrative practices to align with the Supreme Court’s decision.
“Capacity Building: With increased autonomy, local government councils may need to strengthen their capacity and institutional structure to manage their new responsibilities effectively.
“Public Accountability: Autonomous local governments will likely be more accountable to their constituents. Citizens can hold their local representatives directly responsible for governance outcomes, leading to greater transparency and accountability.”
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