Politics
FG, States Set 3-Month Extension For Direct LG Allocations
The need to avert salary payments and operational viability crisis at the third tier of government, has necessitated a three-month moratorium agreement between the Federal Government and the States on the direct remittance of allocations to the Local Government Areas (LGA).
The implication of this is that the LGAs would wait till October before the implementation of the Supreme Court of Nigeria’s (SCN) ruling on the direct payment into their accounts.
Recall that on July 11, 2024, the SCN gave a landmark judgment affirming the financial autonomy of Nigeria’s 774 LGAs, with the import that governors could no longer receive the funds meant for the third tier of government.
The apex court also directed the Accountant-General of the Federation (AGF) to be paying the LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.
Under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit (NFIU) issued a regulation, effective from June 1, 2019, which banned transactions on State and Local Governments Joint Accounts, The Punch reports.
Hitherto, funds were sent directly to the accounts of the local governments.
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The NFIU also limited cash withdrawals from local governments accounts to a maximum amount of N500,000 per day with penalties for banks that failed to comply.
However, the Nigerian governors under the aegis of the Nigerian Governors’ Forum (NGF) kicked against this regulation and the NFIU eventually capitulated.
The status quo was maintained until May 2024 when the Attorney-General of the Federation, Lateef Fagbemi (SAN), filed suit marked SC/CV/343/2024 at the SCN to strengthen the autonomy of the LGAs as provided for in the constitution.
It sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees, actions that violate constitutional provisions.
The AGF argued that the constitution mandates a democratically elected local government system and does not allow alternative governance structures.
The suit also prayed that the funds from the Federation Account be channelled directly to local governments, bypassing the allegedly unlawful joint accounts managed by state governors. The Federal Government also sought an injunction to stop governors and their agents from receiving or spending local government funds without a democratically elected local government system in place. It contended that the governors’ failure to establish such a system constitutes a deliberate subversion of the 1999 Constitution.
The SCN heard parties to the case on June 13, with the state governments, through their respective attorneys-general, opposing the suit.
That was the prelude to the landmark SCN judgment of Thursday, July 11, 2024, which has now affirmed the financial autonomy of Nigeria’s 774 LGAs.
In the unanimous judgment of its seven-member panel, the SCN upheld the suit brought by the federal government to strengthen the independence of local governments in the country.
A member of the panel, Emmanuel Agim, who delivered the court’s lead judgment, held that the LGAs across Nigeria should henceforth receive their allocations directly from the AGF.
He ruled it illegal and unconstitutional for governors to receive and withhold funds allocated to local government areas in their states.
Many Nigerians, including the LG chairmen, hailed the judgment of the SCN, describing it as a step in the right direction to restructure the country.
Although some governors voiced their concerns, the NGF, speaking through the chairman and Kwara State Governor, AbdulRahman AbdulRazaq, said the judgment was a relief from the financial burden to state governments.
AbdulRazaq, speaking to journalists after meeting President Bola Tinubu on July 12, a day after the judgment, said, “The governors are happy with the devolution of power regarding local government autonomy. The public really doesn’t know how much states spend on bailing out local governments.”
Governor Dauda Lawal of Zamfara State has explained that the persistent crisis and legal disputes within the Peoples Democratic Party compelled him to defect to the All Progressives Congress.
The governor’s defection was formally announced on Monday by his deputy, Mani Mummuni, after a stakeholders’ meeting held at the Government House in Gusau.
In a statement issued by the governor’s spokesperson, Sulaiman Bala Idris, the move was described as a necessary step taken in the interest of the state and supported by political stakeholders across Zamfara.
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According to the statement, Governor Lawal had remained committed to the PDP despite the ongoing leadership crisis and had made several efforts to reconcile factions within the party.
However, attempts to achieve peace and unity reportedly failed, leading to prolonged legal battles.
The development followed a judgment by the Court of Appeal in Abuja, which dismissed an appeal filed by the PDP challenging an earlier ruling of the Federal High Court.
The earlier judgment had restrained the Independent National Electoral Commission from recognising the outcome of the party’s national convention held in Ibadan, Oyo State.
The governor was said to have informed political stakeholders during a series of meetings that he would make a final decision about his political future after the appellate court delivered its ruling.
Following the judgment, Lawal concluded that joining the APC would better position him to continue what he described as the “Zamfara Rescue and Rebuild Mission.”
His defection marks a significant shift in the political landscape of Zamfara State and could influence political alignments ahead of the 2027 general elections.
The Court of Appeal in Abuja has handed a significant setback to Ondo State Governor Lucky Aiyedatiwa, dismissing his appeal challenging a Federal High Court ruling that questioned his eligibility to contest the upcoming governorship election.
A three-member panel delivered a unanimous judgment on Monday, affirming that the trial court acted correctly when it allowed Dr Akindele Egbuwalo, the plaintiff, to amend his originating summons.
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Justice Uchechukwu Onyemenam, who read the lead judgment, said the governor failed to show that the High Court’s decision caused any miscarriage of justice or denied him a fair hearing.
The appeal was therefore dismissed for lacking merit, and the court awarded ₦2 million in costs against Aiyedatiwa.
The ruling reinforces the November 24, 2025, Federal High Court decision in Akure, which granted Egbuwalo permission to challenge Aiyedatiwa’s eligibility for re-election.
Earlier, the Court of Appeal also rejected an application by Aiyedatiwa to set aside a January 27, 2026, order staying proceedings in the case before the Federal High Court.
The appellate court clarified that the stay was a lawful exercise of its jurisdiction aimed at protecting the integrity of the proceedings.
The panel further emphasized that attempting to overturn its own order would be akin to sitting on appeal over its own decision.
The governor’s remaining option, the court noted, is to challenge the ruling at the Supreme Court. Another ₦2 million in costs was awarded against Aiyedatiwa.
The crisis rocking the Peoples Democratic Party has deepened following a ruling by the Court of Appeal in Abuja which upheld a ban on the party’s proposed national convention in Ibadan, Oyo State.
A three-man panel of the appellate court on Monday dismissed an appeal filed by a faction of the party led by former Minister of Special Duties, Kabiru Turaki, challenging the jurisdiction of the Federal High Court to hear a suit concerning the controversial convention.
The Turaki-led faction had approached the Court of Appeal after a Federal High Court barred the party from holding its planned national convention scheduled for November 14 and 15, 2025.
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The lower court also restrained the Independent National Electoral Commission from recognising or validating the proposed convention.
However, delivering judgment, the appellate court ruled that the Federal High Court had the authority to entertain the case, rejecting the argument that the matter was purely an internal affair of the party.
According to the court, the appellants could not present what it described as a clear violation of the party’s constitution and the Constitution of the Federal Republic of Nigeria as merely an internal party issue.
The panel subsequently dismissed the appeal and awarded a cost of N2 million against the appellants.
The ruling is part of judgments delivered in nine harmonised appeals filed by the Turaki-led faction over the dispute surrounding the convention.
The latest court decision is expected to further intensify the internal wrangling within the opposition party as it continues to grapple with leadership disputes and preparations ahead of the 2027 general elections.
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