•Lawyers, state AGs aiding govs risk LPDC sanctions, Fagbemi accuses governors of treason
The Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), has issued a stern warning to state governors bypassing the Supreme Court judgment on local government autonomy, threatening to seek a contempt of court suit if the defiance continues.
Fagbemi stated this in Abuja, on Thursday, at the 2024 annual conference of the National Association of Judiciary Correspondents.
The Supreme Court, on July 11, 2024, delivered a landmark judgment affirming the financial autonomy of the 774 local government areas in the country and stopping governors from further control of funds meant for the councils.
The apex court also directed the Accountant-General of the Federation to pay local government allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.
In a suit marked SC/CV/343/2024, aimed at strengthening local government autonomy as guaranteed by the constitution, Fagbemi also obtained a court order preventing governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees.
In the unanimous judgment of its seven-member panel, the Supreme Court upheld the suit brought by the Federal Government to strengthen the independence of local governments in the country.
More than five months after the judgment, the Federal Government had not effected direct payment of allocations to the local government, as directed by the apex court.
The PUNCH reported that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the Federal Government was yet to commence direct payment to the respective LGs due to some “practical impediments.”
He added that a committee had been set up by the Federal Government to look at the practicability of the judgment.
The Federal Government, it was learnt, faced challenges implementing the ruling on local government financial autonomy, with concerns over its impact on salary payments and operational viability.
The Oyo State Governor, Seyi Makinde, who raised concerns over the judgment, called for a homegrown solution to ensure the people did not suffer.
“The law is the law and when there is a conflict, yes, we should go to the court. But it behoves us to look for our own homegrown solutions that can ensure that we have transparency and that our people do not suffer. This is because when two elephants are fighting, it is the grass that will suffer,” Makinde was quoted to have said.
Some states have, however, carried out legislation to bypass the judgment of the Supreme Court.
The Anambra State House of Assembly passed the Local Government Administration Bill 2024 on Tuesday, October 8, 2024, amid condemnation from civil society groups and opposition parties, including Labour Party lawmakers in the assembly.
Section 13(1) of the bill stipulates that the state shall maintain a “State Joint Local Government Account,” into which all federal allocations to LGAs must be deposited.
Section 14(3) further mandates that each LG must, within two working days of receiving their allocations from the Federation Account, remit a state-determined percentage to the consolidated account. This requirement applies even if the allocations are received directly from the Federation Account.
Section 14(4) outlines that if the state receives the LGA allocation on their behalf, it must deduct the specified percentage before disbursing the remaining funds to the LGA.
Labour Party members in the assembly kicked against the bill, saying, “Some sections of the bill, particularly sections 13, 14 and 16, seek to compel the Local Governments to pay their federal allocation into an account to be established by the state government, thereby running foul of the Supreme Court judgment.
The bill was later signed by Governor Chukwuma Soludo on October 15, 2024.
Speaking after signing the bill, Soludo warned that granting full autonomy to Nigeria’s 774 local government areas could lead to “humongous chaos,” arguing that such a move would not result in sustainable development.
Soludo said the new legislation aimed to ensure consistency, transparency, and collaboration among the different tiers of government.
He stated, “The new laws by Anambra House of Assembly are, therefore, consequential to give operational life to the Supreme Court judgment and not to undermine it.
“If the state House of Assembly abdicates this constitutional duty, the local government will then have no law on the use and management of its finance.”
Contrary to the move by the Anambra State House of Assembly, the Nasarawa State House of Assembly, on October 14, 2024, passed a bill to restructure the local government system in the state to conform with the recent ruling of the Supreme Court granting financial autonomy to the third tier of government.
The bill was signed by Governor Abdullahi Sule on November 4, 2024.
Addressing newsmen, the Chairman of the House Committee on Information, Jonah Ali, said, “The amendment of the LG law will, among other things, abolish the existing joint accounts as well as abolish the state Ministry for Local Government and Chieftaincy Affairs.”
The Senate, on Wednesday, October 9, 2024, expressed alignment with the Supreme Court judgment of July 11, 2024, which granted financial autonomy to the 774 local government areas across the country.
It faulted moves by some governors to enact laws to mandate the local government councils in their states to remit allocations into a joint account.
The Red Chamber urged all three tiers of government to fully comply with the judgment and resolved to collaborate with the House of Representatives to amend certain provisions of the 1999 Constitution to ensure full implementation.
The Senate President, Godswill Akpabio, highlighted Section 162, Subsection 6 of the 1999 Constitution, which created the State/Local Government Joint Account.
He noted that the provision must be amended to allow for the full implementation of the Supreme Court judgment.
Speaking at the judiciary correspondents’ conference on Thursday, Fagbemi acknowledged some states’ actions against the local government autonomy, adding that some of the steps taken by the states contradicted the Supreme Court’s judgment.
“I am aware that some states have embarked on legislations, promulgation of legislations which appear to be antithetical to the tenets or tenor of the judgment of the Supreme Court.
“My simple comment is that the states concerned are advised not to tread within the precincts of contempt of court,” he said.
