Introduction

The Attorney General of the Federation (“AGF”) filed a suit against the Attorneys General of Abia State & 35 Ors. earlier this year, 2024, aimed at engendering the autonomy of Nigeria’s 774 Local Government Areas (“LGAs”). The Supreme Court, in its judgment delivered on Thursday, 11th July 2024 granted the prayers of the Plaintiff and affirmed the LGAs’ financial autonomy. Of note from the several pronouncements of the Apex Court is the decision that democratically elected Local Government Councils have the constitutional right to receive allocation payments directly from the Federation Account into their accounts.

Many have celebrated this landmark judgment calling it a watershed moment in developing the country’s constitutional democracy. The President of the Republic described the decision as historic and one that will enhance Nigeria’s true federal fabric. Others have not been more celebratory in their remarks following the judgment of the Apex Court. The pan-Yoruba socio-political association, Afenifere for example described the decision as a conspiracy against democracy.

The Supreme Court’s decision, one could argue, underscores and reaffirms the autonomy granted to Local Governments by the Nigerian Constitution. Afterall, the Fourth Schedule of the  Constitution of the Federal Republic of Nigeria, 1999 as amended (“the 1999 Constitution”) delineates the powers of Local Governments, establishing their right to manage their affairs independently, albeit under the laws enacted by State Houses of Assembly. No doubt this is essential for effective governance, enabling local administrations to address community-specific issues efficiently.

While the judgment marks a significant step towards bolstering grassroots governance and enhancing fiscal responsibility within Nigeria’s federal system, the constitutionality of some aspects of this judgment (particularly the decision that the Federation can bypass State Governments in  LGAs’ allocation process) is called into question and warrants thorough analysis, hence this article. In carrying out this analysis, we will briefly highlight the major dictums of the Supreme Court in its judgement, what Local Government autonomy means given the clear provisions of the 1999 Constitution on this subject and and the practicality of effectively implementing local government financial autonomy.