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It’s Unconstitutional For Governors To Hold LG Funds, Supreme Court Declares

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Local Government in Nigeria

The Supreme Court, on Thursday, declared that it is unconstitutional for state governors to hold onto funds meant for Local Government (LG) administrations

In its lead judgement read by Justice Emmanuel Agim, the apex court observed that the state governments’ refusal of financial autonomy for local governments has gone on for over two decades.

Justice Agim said local governments have since stopped receiving the money meant for them from the state governors who act in their stead.

He noted that the 774 local government councils in the country should manage their funds themselves.

He dismissed the preliminary objections of the defendants (state governors).

Long Walk To LG Autonomy

There are 774 local government areas in the country but the efficiency of the third tier of government has been hampered by the weight of some controlling and overbearing governors who have been accused of mismanaging funds meant for the administration of local governments.

In the last few months, calls for local government autonomy have increased in Nigeria. President Bola Tinubu also supported the calls. In May, the Federal Government, through the Attorney-General of the Federation (AGF), Lateef Fagbemi, sued the 36 state governors over alleged misconduct of local government funds.

Currently, the Federal Government gets 52.68%, and states get 26.72%. In comparison, LGs get 20.60% of the country’s monthly revenue allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) which operates under the Presidency, and disbursed by the Federation Account Allocation Committee (FAAC).

Interestingly, LG funds are paid into a joint account operated by state governments and local governments in their domains.

In the suit filed by AGF, the Federal Government sought an order preventing the governors from arbitrarily dissolving democratically elected councils. The suit by the AGF was on 27 grounds.

The 36 state governors, who are defendants in the suit, opposed the AGF for instituting the case.

The Verdict

In his judgement, Justice Agim said the AGF has the right to institute the suit and protect the constitution.

The apex court consequently directed that Local Government allocations from the Federation Account should be paid directly to them henceforth, and not to state government coffers.

Justice Agim pointed out that the state governors’ retention of the monies meant for the Local Governments truncates the latter’s activities.

Justice Agim ordered the immediate compliance of the judgement, stating that no state government should be paid monies meant for Local Governments.

More to follow…

Politics

Electoral Reform: Dino alleges senate’s plot to rig 2027 election

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Former lawmaker, Dino Melaye Esq, has raised concerns over the Senate’s reported rejection of the electronic transmission of election results.

The move, according to Melaye, is a clear endorsement of election rigging and an indication of a sinister plan to rig the 2027 elections.

In a statement on Friday, the former lawmaker criticized the Senate’s decision, stating that it undermines the credibility of the electoral process.

The African Democratic Congress, ADC chieftain, also stated that the move opens the door for electoral manipulation and fraud.

He further warned that the rejection of electronic transmission of results is a step backwards for democracy in Nigeria.

Melaye called on lawmakers and citizens to stand up against “this blatant attempt to undermine the will of the people and ensure that future elections are free, fair, and transparent”.

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Electoral Act: Nigerians have every reason to be mad at Senate – Ezekwesili

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Former Minister of Education, Oby Ezekwesili, has said Nigerians have every reason to be mad at the Senate over the ongoing debate on e-transmission of election results.

Ezekwesili made this known on Friday when she featured in an interview on Arise Television’s ‘Morning Show’ monitored by DAILY POST.

DAILY POST reports that the Senate on Wednesday turned down a proposed change to Clause 60, Subsection 3, of the Electoral Amendment Bill that aimed to compel the electronic transmission of election results.

Reacting to the matter, Ezekwesili said, “The fundamental issue with the review of the Electoral Act is that the Senate retained the INEC 2022 Act, Section 60 Sub 5.

“This section became infamous for the loophole it provided INEC, causing Nigerians to lose trust. Since the law established that it wasn’t mandatory for INEC to transmit electoral results in real-time, there wasn’t much anyone could say.

“Citizens embraced the opportunity to reform the INEC Act, aiming to address ambiguity and discretionary opportunities for INEC. Yet, the Senate handled it with a “let sleeping dogs lie” approach. The citizens have every reason to be as outraged as they currently are.”

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Electoral act: Senate’s action confirms Nigeria ‘fantastically corrupt’, ‘disgraced’ – Peter Obi

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Former Labour Party presidential candidate, Peter Obi, has condemned the Senate’s refusal to make electronic transmission of election results mandatory, saying the move further exposes Nigeria as a fantastically corrupt and disgraced country.

Obi expressed his views in a statement shared on X on Friday, where he accused lawmakers of deliberately weakening Nigeria’s democratic process ahead of the 2027 general elections.

He explained that his reaction came after a brief pause to mourn victims of a deadly tragedy in Kwara State, where over 150 people reportedly lost their lives.

“Let us first pray for the souls of the innocent Nigerians lost in Kwara. That painful incident is why I delayed responding to the shameful development surrounding our electoral system,” he wrote.

Describing the Senate’s decision as intentional and dangerous, Obi said rejecting mandatory electronic transmission was not a simple oversight but a calculated attempt to block transparency.

“The Senate’s open rejection of electronic transmission of results is an unforgivable act of electoral manipulation ahead of 2027,” he said.

According to him, the action strikes at the heart of democracy and raises serious questions about the true purpose of governance in Nigeria.

“This failure to pass a clear safeguard is a direct attack on our democracy. By refusing these transparency measures, the foundation of credible elections is being destroyed. One must ask whether government exists to ensure justice and order or to deliberately create chaos for the benefit of a few.”

The former Anambra State governor linked the post-election controversies of the 2023 general elections to the failure to fully deploy electronic transmission of results, insisting that Nigerians were misled with claims of technical failures.

The confusion, disputes and manipulation that followed the 2023 elections were largely due to the refusal to fully implement electronic transmission,” he said.

He added that the so-called system glitch never truly existed.

Obi compared Nigeria’s electoral process with those of other African countries that have embraced technology to improve credibility, lamenting that Nigeria continues to fall behind.

“Many African nations now use electronic transmission to strengthen their democracy. Yet Nigeria, which calls itself the giant of Africa, is moving backwards and dragging the continent along.”

He criticised Nigeria’s leadership class, saying the country’s problems persist not because of a lack of ideas but because of deliberate resistance to meaningful reform.

“We keep organising conferences and writing policy papers about Nigeria’s challenges. But the truth is that the leaders and elite are the real problem. Our refusal to change is pushing the nation backwards into a primitive system of governance.”

Warning of the dangers ahead, Obi said rejecting electronic transmission creates room for confusion and disorder that only serves the interests of a small group.

He also recalled past remarks by foreign leaders who described Nigeria as corrupt, arguing that actions like this continue to justify those statements.

“When a former UK Prime Minister described Nigeria as ‘fantastically corrupt,’ we were offended. When former US President Donald Trump called us a ‘disgraced nation,’ we were angry. But our continued resistance to transparency keeps proving them right.”

Obi warned that Nigerians should not accept a repeat of the electoral irregularities witnessed in 2023.

“Let there be no mistake. The criminality seen in 2023 must not be tolerated in 2027.”

He urged citizens to be ready to defend democracy through lawful and decisive means, while also calling on the international community to closely monitor developments in Nigeria’s electoral process.

“The international community must pay attention to the groundwork being laid for future electoral manipulation, which threatens our democracy and development,” Obi stated.

He concluded by expressing hope that change is still possible if Nigerians take collective responsibility.

“A new Nigeria is possible but only if we all rise and fight for it.”

 

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