The Supreme Court has ruled that the federal government should henceforth pay allocations directly to local government councils from the federation account.
Delivering judgment in the suit on Thursday, a seven-member panel of justices held that state governments have continued to abuse their powers by retaining and using the funds meant for LGAs.
The apex court also ordered the federal government to withhold allocations of LGs governed by unelected officials appointed by the governor.
In the lead judgement read by Justice Emmanuel Agim, the apex court observed that the state governments’ refusal of financial autonomy for local governments has gone on for over two decades.
Justice Agim said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.
