In a landmark judgment, the supreme court has outlawed the current practice whereby funds standing to the credit of local governments in the country, are being paid to state joint allocation account of states.
This judgment arose from a suit filed by the attorney general of the federation and minister of justice, lateef fagbemi,san advocating the administrative and final autonomy of local governments in the country.
Before this verdict by the apex court, such local government funds were being paid to and managed through the states’ joint allocation accounts.
The Supreme Court has held that henceforth, the Federal Government should pay any money standing to the credit of the Local Governments in the Federation directly to the Local Government Areas managed by democratically elected officials.
In a lead judgment by Justice Emmanuel Agim, the apex court has also held that it is unconstitutional for State Governments to retain and use allocation meant for the LGAs on their behalf without transferring same to them as provided in Section 162(3) of the Constitution.
