Economy
Supreme Court Judgment on LG Financial Autonomy: Implications on Nigeria ‘s political landscape [Part 1]
By Dr. Isaac Achimugu, AP, CMA, MJP
The recent supreme court of Nigeria’s land mark judgement returning financial autonomy to the Local Government Councils (LGSs) in Nigeria has come at a time that most LGCs in Nigeria have become mere appendages of state governments, with governors controlling virtually every dime allocated to them from the federation account. This pathetic situation spanning over 2 decades greatly undermined the statutory pride of the LGCs being the third tier of government as enshrined in the Nigeria constitution.
At its degenerated stages, most of the governors simply appointed their loyalist to administer the LGCs without conducting local council elections as required by the constitution.
In some cases, these Care taker chairmen were merely known as Liaison Officers (LOS) who by official appointment, were Senior Special Assistants to the Governors. What this implies is that the Governors were in total control of the administrations at two levels, at the 2nd tier as well as the 3rd tier. They run the states as governors and administer the LGCs by proxy This deviant posture constituted a fraudulent breach of the Nigerian constitution, an aberration that saw the grassroots people at the end of an exploitative relationship in which they were the inferior partners.
So far, the governors have enjoyed illegal absolute control of local government funds for upwards of two decades, to the extent that they never saw any need to conduct elections into the local councils. At the time of Justice Emmanuel Agim’s led landmark judgement on 11th July 2024.
In many states, governors were more of Demi-gods who wielded enormous power that no one dares to challenge. Therefore, they take pleasure in oppressing and suppressing their supposed electorates and wasting the local government funds on frivolities and fanfare. Consequently, the LGAs gradually reduced to shadows of themselves with many of the council secretariats overgrown with grasses due to years of neglects occasioned by paucity of funds needed to embark on basic sanitation and cleaning, not to talk of fixing eroded access roads to and within the LGC secretariats.
It is appalling to observe that the third Tier of government, which is regarded as the closest to the electorates, became the farthest to them, as their existence was under perpetual threat. The LGAs were left to breads insecurity and poverty. Worst of it, the LGCs and the grassroots people became voiceless, and any attempt to seek clarifications on issues that borders on their well-being or voice out concerns on obvious frustrations and marginalization, or even try drawing the attention of the demi gods to their plights would be met with severe consequences.
You would agree with me that the aforementioned scenarios played out in almost all the states despite the fact that this ugly trends have no place in the practice of decent democratic governance across the world. The decision of the Supreme court judges that aptly described state governors as ‘dangerous species to the development of democracy’ couldn’t have come at a better time. The wide acceptance of this judgement across Nigeria, the jubilation among the grassroots people, the accolade pouring in for the supreme court judges and President Tinubu since 11th of July, 2024 goes to show Nigerians were helplessly enduring an impunity-induced absurdity. The nation’s joyous mood following the judgement provided adequate justifications fo the bold and revolutionary steps taken by the federal government at stemming the burden of servitude imposed on the LGCs by state governors who were expected to take lead in protecting them. Thus the judgement brought to an end, the age long abhorrent demonstration of emasculation and oppression of a critical tier of government.
It may be argued that the 7-man judges of the highest court in the land went too far in their submission considering the provisions of section 162 of the 1999 constitution as amended which empowers state governors to operate joint LG accounts. This is where some former and serving governors are in disagreement with the judgement. Former governors of Delta and Ekiti States, Chief James Ibori and Mr. Ayo Fayose have, at different occasions expreesed great concerns over the judgement which they saw as undue interference with the constitution. In the same vein, the Governor of Oyo State Seyi Makinde also, disagrees with the judgement lamenting that a possible lacuna may have been created between the constitution and the ruling.
However, borrowing a leaf from the principle of necessity and urgent need to address hardship, poverty and insecurity, the supreme court ruling couldn’t have come at a better time. According to the Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga as reported by Ireporteronline, the root cause of poverty and insecurity within the last 25 years was traceable to the emasculation of the local government councils by the governors. Recall that former President Buhari made several feeble attempts at addressing the financial suffocation of the LGAs by the governors but met bricks walls due to corruption and inexperience of his relevant advisors.
Although the governors are stupendously wealthy and seems to have enormous powers to sabotage government policies that are not in their favors, they however, underestimate the powers of the supreme court to enter rulings that set the stage for constitutional amendment. Already the national assembly has expressed readiness to amend the constitution in lines with the supreme court judgement for proper alignment and allay the fears being expressed by few negative voices. In essence the objections and options offered by the Makindes are considered as dead on arrival. After all no part of the constitution was casted in stone.
A total sum of N1.678 trillion, being February 2025 Federation Account Revenue, has been shared to the Federal Government, States and the Local Government Councils.
The revenue was shared at the March 2025 Federation Account Allocation Committee (FAAC) meeting held in Abuja; chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The meeting was attended by the Accountant General of the Federation, Shamseldeen Ogunjimi.
The total distributable revenue of N1.678 trillion comprised distributable statutory revenue of N827.633 billion, distributable Value Added Tax (VAT) revenue of N 609.430 billion, Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion and Augmentation of N178 billion.
According to a communiqué issued by the Federation Account Allocation Committee (FAAC), total gross revenue of N2.344 trillion was available in the month of February 2025. Total deduction for cost of collection was N89.092 billion while total transfers, interventions, refunds and savings was N577.097 billion.
The communiqué stated that gross statutory revenue of N1.653 trillion was received for the month of February 2025. This was lower than the sum of N1.848 trillion received in the month of January 2025 by N194.664 billion.
Gross revenue of N654.456 billion was available from the Value Added Tax (VAT) in February 2025. This was lower than the N771.886 billion available in the month of January 2025 by N117.430 billion.
The communiqué stated that from the total distributable revenue of N1.678 trillion, the Federal Government received total sum of N569.656 billion and the State Governments received total sum of N562.195 billion.
The Local Government Councils received total sum of N410.559 billion and a total sum of N136.042 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
On the N827.633 billion distributable statutory revenue, the communiqué stated that the Federal Government received N366.262 billion and the State Governments received N185.773 billion.
The Local Government Councils received N143.223 billion and the sum of N132.374 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
From the N609.430 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N91.415 billion, the State Governments received N304.715 billion and the Local Government Councils received N213.301 billion.
A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion Electronic Money Transfer Levy (EMTL). The State Governments received N17.585 billion and the Local Government Councils received N12.310 billion.
From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion and the State Governments received N6.560 billion.
The Local Government Councils received N5.057 billion and a total sum of N3.668 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
The Augmentation of N178 billion was shared as follows: Federal Government received N93.770 billion, the State Governments received N47.562 billion and the Local Government Councils received N36.668 billion.
In February 2025, Oil and Gas Royalty and Electronic Money Transfer Levy (EMTL), increased significantly while Value Added Tax (VAT), Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Excise Duty, Import Duty and CET Levies recorded decreases.
Economy
Protesters urge president Tinubu to protect Diaspora housing investments along Lagos-Calabar coastal highway
A group under the aegis of Renewed Hope Concern Citizens (RHCC) on Friday staged a peaceful protest, calling for President Bola Tinubu’s intervention in protecting housing investments owned by Nigerians in the diaspora along the Lagos-Calabar coastal highway.
The protesters gathered in front of the United States Embassy in Abuja, carrying banners with inscriptions such as; Minister of Works, Senator Umahi should revert to the original gazetted alignment as promised. Enough is Enough; Association of Nigerian Diaspora Investors (ANDI) has cried enough, please intervene to save their energy to promote, support, and assist the Renewed Hope Administration; Renewed Hope Concern Citizens want Diaspora Investments to be protected and given adequate attention among others
“As committed stakeholders in the nation’s economic progress, we have consistently supported the government’s vision, particularly in revitalizing Nigeria’s infrastructure and energy sector. While we acknowledge the administration’s positive strides, recent developments have raised concerns about the misalignment of energy policies, particularly regarding the 2006 Gazetted alignment.
“We urgently call on the Minister of Works, Senator David Umahi, to restore the 2006 Gazetted alignment to ensure continued growth and stability in Nigeria’s energy sector,” said Hon. Tayo Agbaje, Chairman of RHCC, while addressing journalists.
The group refuted the Minister’s claim that an underground cable warranted the removal of structures in Okun Ajah, Lagos and outlined several reasons why President Tinubu’s intervention is crucial.
According to them, The 2006 Gazetted alignment has long provided a stable and predictable framework, essential for maintaining investor confidence in Nigeria’s energy sector.
“Diaspora investors contribute significantly to job creation, business growth, and the overall economy, making their protection vital to sustaining these contributions.
“The President should investigate the Minister of Works’ claim about the underground cable allegedly interfering with the 2006 Gazetted plan.
“Restoring the alignment will reinforce Nigeria’s commitment to a stable investment climate, boosting foreign investor confidence and attracting much-needed capital for infrastructure development.
“Deviating from established policies creates uncertainty, undermining both current and future foreign investments.
“Maintaining the 2006 Gazetted alignment will signal Nigeria’s dedication to long-term economic stability, further reassuring both local and international investors,” the group stated.
The RHCC reaffirmed its support for the Association of Nigeria in Diaspora Investments (ANDI) in its quest to uphold the 2006 Gazetted alignment plan of the Lagos-Calabar Coastal Highway.
They urged the government to act swiftly to protect diaspora investors, as this will strengthen Nigeria’s investment future and ensure continued economic success under the Renewed Hope Administration.
Economy
Ogunjimi promises to collaborate with ex-Accountants-General in taking treasury house to greater heights
The newly appointed Accountant General
of the Federation, Mr Shamseldeen B. Ogunjimi said he would collaborate and tap from the wealth of experiences of all Former Accountants -General of the Federation to bring the nation treasury to a greater height.
Mr Ogunjimi disclosed this while receiving two Former Accountants-General of the Federation, Dr John Naiyeju and Dr Ibrahim Dankwambo in his office in Abuja.
Speaking earlier, Senator Ibrahim Dankwambo suggested the upgrading of the Treasury Academy, Orozo owned by the Office of the Accountant-General of the Federation (OAGF) to a Degree (University) awarding Institute.
Also, Dr. John K. Naiyeju charged the new Accountant-General to carry along everyone and advised him to make staff welfare his priority.
In a related development, the Accountant-General of the Federation expressed his willingness to work with all professional organisation that will bring positive development to the nation, especially, his professional and Academy colleagues of the doctorate class.
Mr Ogunjimi called on his classmates to come up with ideas and suggestions that will enhance the management of the nation’s treasury that will positively affect the economy development.
In his remarks, the Chairman Forum of Doctorate Students, Ibrahim Aliyu said that they were in Treasury House to congratulate one of their own and assured him of their support towards his successful tenure.
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