BudgIT, a leading civic-tech organisation promoting transparency, accountability, and effective service delivery in Nigeria, has applauded the Supreme Court’s decisive ruling against state governors’ unconstitutional retention and utilisation of funds meant for the 774 Local Government Areas (LGAs), describing it as a win for fiscal governance and accountability.
It would be recalled that in May, the Federal Government, through the Attorney-General of the Federation, Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds following increased calls for local government autonomy, a move supported by President Bola Ahmed Tinubu. Nigeria operates a three-tier government—Federal, State, and Local—with 774 local government areas across 36 states. However, for too long, the effective administration of local governments has been hindered by undue interference and mismanagement of funds by some state governors.
In a landmark judgement, the apex court ordered the federal government to immediately pay local government allocations to its exclusive accounts. According to the Federation Account Allocation Committee (FAAC) sharing formula, the Federal Government receives 52.68%, States receive 26.72%, and Local governments receive 20.60%. Interestingly, the latter’s funds are paid into a joint account operated by state and local governments in their domains.
The civil tech organization noted that the Supreme Court’s verdict, declaring the practice of governors seizing LGA funds as illegal and unconstitutional, reaffirmed the principle of financial autonomy for local governments. This decision upholds the rule of law and reinforces the constitutional framework designed to ensure equitable distribution of resources for grassroots development.
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In addition, it maintained that the ruling also meant that Local Government Areas with Caretaker Committees would not receive allocations until they conducted credible LGA elections.
In his comments on the judgement, BudgIT’s Country Director, Gabriel Okeowo, said: “This ruling is a victory and a significant step towards enhancing fiscal transparency, accountability, and local governance in Nigeria. This is also a win for BudgIT Foundation, considering that irrespective of the anomaly that has been ongoing with local government resources, BudgIT, since 2019 has consistently educated the public with the details of local allocations through www.me.budgit.org,”
In light of this, BudgIT canvassed the need for strict adherence to this ruling and urge all stakeholders, including state governments, to respect the rule of law and uphold the principles of fiscal responsibility, adding that “we remain resolute in advocating for reforms that promote inclusive governance and empower citizens through access to accurate fiscal information.”
