CASE REPORT - The Editorial Board

 

IN THE SUPREME COURT OF NIGERIA

HOLDEN AT ABUJA

On Tuesday 11 July 2024

BETWEEN

Attorney General of the Federation                                     Plaintiff

Attorney General of Abia State and 35 Ors                         Defendants

CASE NUMBER: SC/CV/343/2024

CASE REPORT

In the case of Attorney General of the Federation v Attorney General of Abia State and 35 Ors, the Supreme Court delivered a landmark decision that resolved a crucial constitutional matter and affirmed the autonomy of Local Governments in Nigeria. The facts of this case are summarized hereunder:

The Federal Government of Nigeria, in May 2024 instituted a local government suit at the Supreme Court. This action was spurred by the federal government’s alleged observation of rampant misconduct of state governments in the administration of local government councils as well as conspicuous mismanagement of local government funds. Standing by the allegations of misconduct, the learned Attorney General of the Federation prayed the supreme court to issue an order prohibiting arbitrary dissolution of democratically elected local government leaders by state governors, an order to withhold funds meant for local government in states that unlawfully dissolve democratically elected local government officials and an order to allow direct monthly allocations from the Federation Account to the various local government councils.

In defence to this action, the Attorney Generals of the 36 states of the Federation filed preliminary objections, challenging the jurisdiction of the Supreme Court to entertain the suit. However, the Supreme Court after determination of the preliminary objection found that it had jurisdiction and proceeded to set down a date for hearing.

The two major issues gleaned from the several questions presented to the court for determination include;

1. WHETHER IT IS CONSTITUTIONAL FOR THE STATE GOVERNORS TO WITHHOLD FUNDS ALLOCATED TO THE LOCAL GOVERNMENTS FROM THE FEDERATION ACCOUNT.

2. WHETHER LOCAL GOVERNMENTS ARE ENTITLED TO DIRECT PAYMENTS FROM THE FEDERATION ACCOUNT GIVEN THE PERSISTENT FAILURE OF STATE GOVERNMENTS TO DISBURSE THESE FUNDS.

On both issues, the court upheld the argument of the Attorney General of the Federation and held that it is unconstitutional and illegal for state governments to retain funds allocated for the benefit of local government councils, and that the Federal Government shall have authority to make direct payment of allocations from the Federation Account to the local governments.

This decision of the court on direct allocation to local government councils has attracted much controversy. The fraction of citizens who oppose this position of the court have based their arguments on the ground that the decision contradicts the provision of sections 162(6) & (8) of the constitution which mandates the transfer of local government fund to the State Joint Local Government Account for further transmission to local government councils. The majority of Justices of the Supreme Court affirmed that a literal interpretation of these provisions will only make it repugnant in its application. Therefore, it behoves on the court to interpret this constitutional provision in consideration of public interest.

Despite opposing views, the decision of the apex court still stands. This decision of the Supreme Court has reinforced the financial autonomy of local governments in Nigeria and has the potential to revolutionize local government administration for better efficiency and accountability.