LG Autonomy: Rivers, Kano, Anambra, and 17 Other States to Lose LG Allocations from July

• Following the Supreme Court’s ruling LG autonomy, the Federal Government will withhold local government allocations from Cross River, Enugu, Kano, Rivers, and 16 other states that have unelected local government officials appointed by state governors.
• Justice Emmanuel Agim barred the Federal Government from disbursing funds to these states due to governors retaining and misusing local government allocations, emphasizing that only elected officials should receive these funds.
• Starting July, 20 states without elected local government chairmen, including Jigawa, Rivers, and Anambra, will not receive local government allocations until they conduct elections.

LG Autonomy: Rivers, Kano, Anambra, and 17 Other States to Lose LG Allocations from July

In a significant development following a Supreme Court judgment, the Federal Government of Nigeria will withhold local government allocations to Rivers, Kano, Anambra, and 17 other states starting from July 2024.

This decision is a direct consequence of the Supreme Court’s ruling on the local government autonomy suit filed by Attorney General of the Federation, Lateef Fagbemi, SAN, representing the Nigerian Government.

Supreme Court Judgment

On Thursday, the Supreme Court delivered its judgment, barring the Federal Government from disbursing local government allocations through state governments, a practice that has been prevalent and widely criticized.

The court found that state governors have been abusing their authority by retaining and misusing funds intended for local government councils.

Justice Emmanuel Agim, who delivered the ruling, emphasized that the Federal Government must stop paying local government allocations to states that have unelected officials managing local councils.

The judgment identified that state governors often appoint unelected officials to manage local governments, thereby retaining control over the funds.

Implications of the Ruling

As a result of the Supreme Court’s decision, 20 states that currently do not have elected local government chairmen will not receive local government allocations from July until they conduct proper elections. The affected states include:

1. Cross River
2. Enugu
3. Kano
4. Rivers
5. Anambra
6. Jigawa
7. … (and 14 other states)

This measure aims to enforce local government autonomy and ensure that funds are utilized for their intended purposes, directly benefiting local communities.

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Several states have recently taken actions that conflict with the Supreme Court’s directive:

• Jigawa State: In June, the state government dissolved the elected council chairmen of the 27 local governments following an amendment to the local government law by the state house of assembly.
• Rivers State: Governor Siminalayi Fubara appointed caretaker chairmen, dissolving those appointed by his predecessor Nyesom Wike due to a political dispute.
• Anambra State: Governor Charles Soludo, through the state’s House of Assembly, appointed transition committee chairmen and councillors for the 21 local government areas.

Financial Impact

For the month of July, the 36 states and the Federal Capital Territory (FCT) received N293.82 billion from the Federal Government on behalf of the 774 local government areas.

The withholding of allocations to the affected states will likely have significant financial implications, urging state governments to comply with the constitutional requirement of having democratically elected local government officials.

The Supreme Court’s ruling represents a decisive step towards enforcing local government autonomy and ensuring that local government funds are used effectively and transparently.

The affected states must now prioritize conducting local government elections to regain access to their allocations. This decision underscores the importance of democratic governance at all levels and aims to promote accountability and better resource management in Nigeria’s local governments.