The Federal Government of Nigeria has asked the Supreme Court to stop the governors of 36 states from spending or tampering with 20.6% allocation from the federation account to local government areas.
The suit is coming amid the distribution of N1.208 trillion to the three tiers of government for May 2024, as announced by the Federation Account Allocation Committee (FAAC).
In the suit marked SC/CV/343/2024 and seen by Nairametrics on Sunday, the Attorney General of the Federation and Minister of Justice (AGF), Prince Lateef Fagbemi (SAN), argued that in the face of the clear provisions of the 1999 Constitution, the governors have failed and refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state.
FG’s stand on LGAs
Fagbemi submitted that all efforts to make the governors comply with the dictates of the 1999 Constitution in putting in place democratically elected local government systems have not yielded any result.
He maintained that FAAC allocations for the LGAs must go to their accounts.
He added that to continue to disburse funds from the Federation Account to governors for non-existing democratically elected local governments is to undermine the sanctity of the 1999 Constitution.
He told the apex court that the failure of the governors to put a democratically elected local government system in place is a deliberate subversion of the 1999 Constitution.
He stated,
“That the governors represent the component states of the Federation with Executive Governors who have also sworn to uphold the Constitution and to at all times, give effects to the Constitution and that the Constitution, being the supreme law, has binding force all over the Federation of Nigeria.
“That the Constitution of Nigeria recognizes federal, state and local governments as three tiers of government and that the three recognized tiers of government draw funds for their operation and functioning from the Federation Account created by the Constitution.
“That by the provisions of the Constitution, there must be a democratically elected local government system and that the Constitution has not made provisions for any other systems of governance at the local government level other than the democratically elected local government system.
“That in the face of the violations of the 1999 Constitution, the federal government is not obligated under section 162 of the Constitution to pay any State, funds standing to the credit of local governments where no democratically elected local government is in place.”
The AGF prayed the apex court to hold that FAAC allocations to local governments should go to their accounts and not to joint accounts between states and LGAs, which empower the governors to do as they please with the funds.
“A declaration that by virtue of 5.162 (3), (5) and (6) of the Constitution of the Federal Republic of Nigeria 1999, the amount standing to the credit of a Local Government Council in the Federation Account and received by a State on its behalf, and paid into a State Joint Local Government Account is liable to be paid directly to each Local Government without further delay.
“ An order of injunction restraining the Defendants, by themselves, their privies, agents, officials or howsoever called from receiving, spending or tampering with funds released from the Federation Account for the benefit of local government councils when no democratically elected local government system is put in place in the State,” he prayed.
Nairametrics gathered that the Supreme Court has fixed May 30 for the hearing of the suit between the AGF and the Attorneys-General of the 36 states.
More insights
- The Supreme Court has jurisdiction to hear and determine issues between the FG and states.
- The states and LGAs have been operating a joint account over the years but the AGF is now saying that payments to the LGAs should be made directly to its separate accounts.
- There has been an outcry from the LGAs regarding financial autonomy.
- The suit is apparently a constitutional matter and seeks interpretation from the apex court.
- In the current FAAC allocation system, the Federal Government gets 52.68%; states receive 26.72%, and local governments are given 20.6%.
