By Abiola Olawale
The Socio-Economic Rights and Accountability Project (SERAP) has given the 36 governors of the Federation and as well the Minister of Federal Capital Territory (FCT), Nyesom Wike a Seven-day ultimatum to return local government funds which they received over the years, running to a purported figure of N40 trillion.
SERAP said the ultimatum came following a Supreme Court ruling on Thursday that declared the practice of state governors and the FCT minister withholding and utilising funds intended for local governments unconstitutional.
In a statement signed by SERAP deputy director, Kolawole Oluwadare, on Thursday, the organisation said that with the judgment of the apex court, it is in the public interest for the governors and FCT minister to account for and return the funds meant for local governments in their states and the FCT since 1999, respectively.
The statement reads in part: “We applaud the Supreme Court for this groundbreaking decision which will end the persistent alleged misappropriation by several of trillions of FAAC allocations or public funds meant for local governments.
“Following the Supreme Court judgment, there is now a clear legal precedent to hold governors and FCT ministers to account for how they have spent the local government funds collected by them.
“Implicit in the Supreme Court judgment is the requirement for the governors and FCT minister to immediately account for and return the funds meant for local governments but retained and used or allegedly misused by them.
“Accounting for and returning the LGA funds collected would build trust in democratic institutions and strengthen the rule of law.
“If the governors and FCT minister fail to account for and return the funds meant for local governments in their states and FCT within 7 days, SERAP shall consider appropriate legal actions to compel the governors and FCT minister to comply with our requests in the public interest.
“Accounting for and returning the local government funds collected would alleviate poverty, improve access of Nigerians to basic public goods, and enhance the ability of the local governments to effectively and efficiently discharge their constitutional and statutory responsibilities.
“The 36 states in Nigeria and the federal capital territory, Abuja, have reportedly collected over N40 trillion federal allocations meant for the 774 local governments areas in the country and FCT.
“The Federation Account Allocation Committee disbursed to states N225.21 billion federal allocations meant for local governments in November 2023 alone. States also collected N258,810,449,711.47 federal allocations meant for local government areas in December 2023.”
The New Diplomat reports that the apex court on Thursday declared that the state government’s collection of funds meant for local government areas (LGAs) is unconstitutional. A seven-man panel of the Supreme Court on Thursday delivered the ruling.
Justice Emmanuel Agim, gave this verdict while delivering judgment in the suit marked: SV/CV/343/2024, which was filed by the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, against the 36 state governors seeking full autonomy for the 774 local governments in the country.
The ruling came after several years of calls for local government autonomy as the efficiency of the third tier of government has been hampered by state governments.
Currently, the Federal Government gets 52.68%, and states get 26.72% while LGs get 20.60% of the country’s monthly revenue allocated as spelt out by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
