Hailing The Supreme Court On LG Allocation Judgment – Mike Ozekhome, SAN

The supreme court judgement today, July 11, 2024, directing the Federal Government to pay allocations due to Local Government Areas directly to their account thereby abolishing the old practices of State-Local Government Joint Account,is timely and courageous.

What the judgement has done is more like interpreting section 162 of the Constitution, which provides for a joint State-Local Government Account. In which case, money is normally paid to state governors’ accounts and then for them to disburse to the local governments for them to share. But what has been happening is that, as I noted in 2020,over three years ago, the state governors, have been behaving like ”bandits”, waylaing local governments funds along the way and thus impoverishing them leaving them with nothing to work, just a little for salary. And nothing to actually work for the people whom they represent.

I agree totally with the judgement of the supreme court to grant full financial autonomy so that money is released and paid directly to the 774 local government councils which constitute the third-tier of government,to develop their places because the LGAs are grassrooted and nearest to the people. Rather than allow overbearing state governors throw their weight around and muzzle the local governments and seize their purse,they will now allow LGs breath some air of freedom.

If you take a look at our situation, Nigeria is operating a very lopsided federation,more like a unitary system of government. Where the federal government is supposed to be a small government,it is controlling 67 items on the exclusive legislative list. That is why the federal government gets the lion share of the federation account , the lion share of the money that comes to the federation account to the tune of 52.68%. The states get 26.72% while the entire 774 local government councils in Nigeria get just 20.60% of the monthly allocation by the Revenue Mobilization Allocation and Fiscal Commission, RLASMC.

The question is, what is the federal government doing with almost 53% of the national income? That is because it is a government that is behemoth.That is elephantine. A government that intrudes and intervenes in areas that should not concern it at all. What is the federal government’s business with licensing cars and trucks for states? What is its business with the Marriage Act, dealing with how people marry and wed in Nigeria and how they live together as husband and wife and separate or divorce? What is the federal government’s business with unity schools? A whole FG operating secondary schools? What is their business? Why is the FG not allowing states generate their own power, operate their own railway stations, if they have the capacity? Why should the federal government not allow states have their own police force? Even for the local governments to have their own police force as we have in the United States and other advanced countries of the world where even tertiary institutions have their own police?

The truth is that the federal government is overbloated and overpampered. That is why it is using too much money and make the centre become too attractive,eating deep into funds that ought to be meant for the states and local government areas. The states take not only that which belongs to the states, but also waylays at source that which is meant for the local government areas. No Nation grows that way.

So, I see this judgment as epochal,having far-reaching effect because money will now be made available directly to the local government areas who will no longer be subservient, like fawning slaves to state governors. In fact, the judgement even went further to say that no state government has the power henceforth to dissolve local government areas. This is because we have been seeing cases where inspite of the provisions of section 7 of the 1999 constitution that give autonomy to local government areas, states normally go ahead and dissolve local government areas ND appoint caretaker committees for them.This is whimsical and capricious.The Supreme Court has said this can no longer go on and that henceforth, no state government should ever be able to dissolve any local government area in Nigeria for any reason whatsoever and howsoever.

The judgement is salutary, timely and regenerative. It should be upheld by all governments and people in Nigeria for better democratic dividends.I see this as victory for our wobbling democracy, even if we are far removed from true fiscal federalism where the federating units control and utilize their God-given resources while paying royalty or tax to the central government. This case is one big plus for tested court room gladiator, Prince Lateef Fagbemi, SAN, the Attorney General of the Federation, who initiated the case at the apex court, invoking its original jurisdiction.Surely,to jaw-jaw is better than to war-war. God bless Nigeria.

BY: PROF. MIKE A. A. OZEKHOME, SAN, CON , OFR, FCIArb, LL.M, Ph.D, LL.D, D.Litt, D.SC, DA, DHL