The apex court ruled that it is illegal and unconstitutional for governors to continue to receive and seize funds allocated to LGAs in their states.  It maintained that the “dubious practice” which has gone on for over two decades, was a clear violation of Section 162 of the 1999 Constitution, as amended.

 In its lead judgement that was delivered by Justice Emmanuel Agim, the apex court held that no House of Assembly of any state has the power to make laws that could, in any manner, interfere with monies meant for the LGAs.

 Stressing that the law mandated that LGAs must be governed by democratically elected officials, the Supreme Court ordered that forthwith, funds meant for the LGAs must be directly paid to them from the federation account.

It further declared unconstitutional the appointment of caretaker committees by governors to run the affairs of the LGAs. It held that the 36 states are under obligation to ensure democratic governance at the third tier of government.

The judgement followed a suit the Federal Government filed to secure financial autonomy for the LGAs.

 Earlier, the court dismissed preliminary objections the state governors filed to challenge the competence of the suit.