The Business NG - July 12, 2024

In this issue

In a landmark ruling, the Supreme Court of Nigeria has declared that state governors no longer have the power to dissolve democratically elected local government councils. This decision aims to reinforce the autonomy of the 774 local government areas, ensuring they receive and manage their funds directly.

*Key Points:*

- The court ruled that state governors' control of local government funds violates the 1999 Constitution.
- Allocations from the Federation Account will now be paid directly to local governments, bypassing state intermediaries.
- The decision is expected to enhance the efficiency and transparency of local government administrations.
- The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, brought the suit before the court.
- The court upheld arguments citing sections 1, 4, 5, 7, and 14 of the constitution, asserting that governors and state houses of assembly must ensure democratic elections and financial independence for local councils.