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.

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In the suit, marked SC/CV/343/2024, was filed on May 20, by the Attorney General of the Federation and Minister of Justice (AGF), Lateef Fagbemi (SAN) on behalf of the Federal Government.

The Federal Government is praying the Apex Court for an order prohibiting State Governors from unilateral, arbitrary, and unlawful dissolution of democratically elected leaders for local governments.

Fagbemi has also asked the Supreme Court for an order permitting the funds standing in the credits of Local Governments to be directly channelled to them from the Federation Account in line with the provisions of the Constitution as against the alleged unlawful joint accounts created by Governors.

In addition, the prayer wants an order stopping Governors from constituting caretaker committees to run the affairs of local governments as against the constitutionally recognized and guaranteed democratic system.

Also, the federal government wants an order of injunction restraining the Governors, their agents, and privies from receiving, spending or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected Local Government system is put in place in the states.

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