In a landmark judgment on Thursday, July 13, 2023, the Supreme Court ordered the Federal Government to commence immediate direct payment of local government funds into their exclusive accounts.
Justice Emmanuel Agim, who read the lead judgment, chastised state governments for refusing financial autonomy to local governments for decades. He stated, “The 774 local government councils in the country should manage their funds themselves.”
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Dismissing the preliminary objections of the defendants (state governors), the apex court directed that local government allocations from the Federation Account be paid directly to them henceforth, and not to state government coffers.
Justice Agim emphasized that the state governors’ retention of monies meant for local governments truncates the latter’s activities. He ordered immediate compliance with the judgment, stating, “No state government should be paid monies meant for local governments.”
