Former Vice President, Abubakar Atiku, has praised the Supreme Court over its ruling affirming fiscal autonomy to local government councils in Nigeria.
Atiku in a statement on Thursday said the judgment of the Supreme Court is a step in the right direction.
“The judgment of the Supreme Court earlier today affirming fiscal autonomy to local government (LG) councils in the country is a win for the people of Nigeria,” Atiku wrote on his X account.
“The court’s ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country.
“The decision by the Federal Government to consolidate disbursements of local councils’ revenues into the state government accounts was a decision that was borne out of politics of hasty compromise.”
Atiku said he aligns with the decision of the Supreme Court that the structure of the Nigerian government is portioned in three layers, and of these, the local governments should be centres of development.
He stated that he also shares the belief that fiscal autonomy to the local governments should not be limited to revenues from the Federation Accounts, but indeed, should apply to Internally Generated Revenue (IGR) from the respective local government (LG) authorities.
The former VP said many of the states in Nigeria, especially those in the ultra urban areas with high density economic activities, have become notorious in muscling local councils from generating revenue on items that border on motor parks, outdoor advertising, rents and many more.
“The verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments,” Atiku stated.
The Supreme Court on Thursday declared that it unconstitutional for state governors to withhold funds meant for Local Government (LG) administrations.
In a landmark ruling on Thursday, Justice Emmanuel Agim stated that LG allocations from the Federation Account should henceforth be paid directly to the local governments (LG).
The court’s decision follows a longstanding issue where state governors have refused to grant financial autonomy to local governments, effectively withholding funds intended for them.
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Justice Agim said that all 774 local government areas (LAG) in Nigeria must manage their own finances independently.
The ruling dismissed preliminary objections from the state governors, backing the suit filed by the Attorney-General of the Federation (AGF), Lateef Fagbemi. The Federal Government’s suit sought to prevent governors from arbitrarily dissolving democratically elected councils, among other issues.
Justice Agim asserted the AGF’s right to protect the constitution by instituting the suit, ultimately directing that LG allocations should be disbursed directly from the Federation Account.
