As the deadline for the submission of the report by the 10-member inter-ministerial committee on the implementation of the Supreme Court ruling on Local Government autonomy approaches, state governors have intensified lobbying efforts to resist the enforcement of the verdict. The committee, chaired by Secretary to the Government of the Federation (SGF) George Akume, has completed its assignment and is expected to submit its report on or before October 13, according to recent findings.
This development follows the July 11, 2024, Supreme Court ruling, which affirmed the financial autonomy of Nigeria’s 774 Local Government Areas (LGAs) and restricted state governors from controlling funds meant for the councils. The landmark judgment, delivered by a seven-member panel led by Justice Garba Lawal, declared that the practice of governors withholding local government funds was illegal and unconstitutional. The court further directed the Accountant-General of the Federation to pay federal allocations directly to local government accounts.
The ruling is seen as a significant step toward ensuring financial independence for LGAs and addressing the long-standing issues of underfunding and mismanagement in the local government system. However, it has sparked a new wave of political maneuvering, with governors under the aegis of the Nigerian Governors’ Forum (NGF) reportedly lobbying top government officials to delay or soften the implementation of the ruling.
A Presidency source, who spoke on condition of anonymity, confirmed that the governors have been pressuring key officials to reconsider the full enforcement of the Supreme Court’s decision. “Governors are already lobbying to stall the implementation of the apex court ruling as the panel prepares to submit its report next week. But the President is committed to implementing the Supreme Court ruling. The ministries of finance and justice are working to finalize the details of implementation,” the source said.
The struggle between the federal government and state governors over local government funds is not new. In 2019, under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) introduced regulations to curb the misuse of local government allocations by state governors. These regulations, which took effect on June 1, 2019, banned transactions from State and Local Governments Joint Accounts and limited cash withdrawals from local government accounts to a maximum of N500,000 per day.
However, state governors vehemently opposed these measures, arguing that they interfered with the financial administration of states. Their opposition led to the NFIU eventually easing some of the restrictions, allowing governors to maintain a degree of control over local government finances.
In May 2024, the Federal Government, represented by Attorney-General of the Federation and Minister of Justice Lateef Fagbemi, filed a lawsuit challenging the governors’ authority to receive and withhold federal allocations meant for LGAs. The suit also sought to end the practice of governors unilaterally dissolving democratically elected local government councils and replacing them with caretaker committees, a common tactic used to assert control over local governments.
The Supreme Court’s ruling in July 2024 was a decisive blow to these practices, affirming that local governments must be financially independent and governed by elected officials, as mandated by the constitution. The court’s decision has been widely welcomed by local government workers and advocacy groups, who have long called for reforms to strengthen the autonomy of LGAs and improve service delivery at the grassroots level.
The National President of the National Union of Local Government Employees (NULGE), Hakeem Ambali, expressed optimism about the upcoming implementation of the ruling. “A technical committee was set up under the chairmanship of the Secretary to the Government of the Federation, and it is expected that implementation kicks off on or before October 11, as mandated by the Supreme Court. The President’s speech has also given us more reassurance that this is already a done deal. NULGE has also submitted its report to the committee,” Ambali stated.
Despite these assurances, the resistance from state governors remains a significant obstacle. The governors are concerned that the loss of control over local government funds will weaken their political influence at the grassroots level, particularly as LGAs play a critical role in delivering essential services and managing local infrastructure projects. Many governors have historically used their control over local government funds to reward political allies and maintain loyalty within their states.
As the submission of the inter-ministerial committee’s report draws near, the federal government faces a critical decision on how to navigate the pushback from governors while ensuring the full implementation of the Supreme Court’s ruling. The next few weeks will be pivotal in determining the future of local government autonomy in Nigeria, as stakeholders across the political spectrum continue to debate the best path forward.
For the 774 local governments across the country, the upcoming reforms could usher in a new era of financial independence, potentially allowing for better governance, improved infrastructure, and enhanced service delivery to millions of Nigerians at the grassroots level. However, the success of these reforms will depend on the federal government’s ability to withstand political pressure and enforce the judgment effectively.
