The Supreme Court has ruled that the Federal Government must directly pay any funds allocated to Local Governments in the Federation to the Local Government Areas managed by democratically elected officials. This decision, delivered in a lead judgment by Justice Emmanuel Agim, deems it unconstitutional for State Governments to retain and use allocations meant for LGAs without transferring them as mandated by Section 162(3) of the Constitution.
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The ruling came in response to a suit filed by the Attorney General of the Federation (AGF), which sought full autonomy for LGAs. The court's decision is a significant move towards ensuring that Local Governments receive their funds directly, enhancing their ability to manage resources and provide services to their communities.
