Nigeria's Supreme Court affirms local government fiscal autonomy, ordering direct fund transfers from the federation account. Former Vice-President Atiku Abubakar praises the ruling as a win for Nigerians. The decision aims to strengthen grassroots democracy and challenges state control over local revenues.
In a landmark decision, Nigeria's Supreme Court has affirmed the fiscal autonomy of local government areas (LGAs), marking a significant shift in the country's governance structure. The ruling, which mandates the direct transfer of funds from the federation account to LGAs, has been hailed as a triumph for grassroots democracy by former Vice-President Atiku Abubakar.
The case, initiated by the federal government against the 36 state governors, sought to enforce constitutional provisions granting financial independence to the 774 local governments. The Supreme Court's verdict not only supports this autonomy but also directs the withholding of allocations to LGAs run by unelected officials appointed by governors.
Atiku Abubakar, a prominent political figure, lauded the decision as "a win for the people of Nigeria" and "a step in the right direction" for national development. He criticized the previous practice of consolidating local council revenues into state government accounts, describing it as a "politics of hasty compromise."
The former vice-president emphasized the importance of recognizing local governments as the third tier of Nigeria's governmental structure and advocated for expanding fiscal autonomy beyond federation account allocations to include internally generated revenue.
This ruling challenges the status quo, particularly in urban areas where state governments have often controlled local revenue sources such as motor parks and outdoor advertising. It aims to empower local authorities and promote more equitable development across the nation.
