Former Vice-President Atiku Abubakar says the ruling of the supreme court affirming the fiscal autonomy of LGAs in the country is a “win for the people of Nigeria”.
In May, the federal government filed a suit at the supreme court against the governors of the 36 states, seeking full autonomy for the country’s 774 local governments.
In the suit filed by Lateef Fagbemi, attorney-general of the federation (AGF) and minister of justice, the federal government also requested the supreme court to authorise the direct transfer of funds from the federation account to local governments — in accordance with the constitution.
Earlier on Thursday, the supreme court ruled that the federal government should henceforth pay allocations directly to the LGs from the federation account.
The apex court also ordered the federal government to withhold allocations of LGs governed by unelected officials appointed by the governor.
Reacting in a post on his X page, Abubakar commended the supreme court’s judgment, describing the ruling as a “step in the right direction” for national development.
However, he criticised the federal government’s decision to consolidate local council revenues into state government accounts, calling it a “politics of hasty compromise”.
“The judgment of the Supreme Court earlier today affirming fiscal autonomy to local government councils in the country is a win for the people of Nigeria,” Abubakar wrote.
“The court’s ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country.
“The decision by the Federal Government to consolidate disbursements of local councils’ revenues into the state government accounts was a decision that was borne out of politics of hasty compromise.
“I align with the decision of the Supreme Court that the structure of the Nigerian government is portioned in three layers, and of these, the local governments should be centres of development.”
The former vice-president advocated for the expansion of fiscal autonomy beyond federation account allocations.
“I also share the belief that fiscal autonomy to the local governments should not be limited to revenues from the Federation Accounts but, indeed, should apply to Internally Generated Revenue from the respective local government authorities.
“Many of our states, especially those in the ultra-urban areas with high-density economic activities, have become notorious in muscling local councils from generating revenue on items that border on motor parks, outdoor advertising, rents and many more.
“The verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments.”
