The Socio-Economic Rights and Accountability Project (SERAP) has issued a call to the 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to “immediately account for and return the local government funds they have collected over the years.”
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This demand follows a landmark Supreme Court ruling on Thursday, which declared the practice of state governors and the FCT minister withholding and utilizing funds intended for local governments as unconstitutional.
Kolawole Oluwadare, SERAP’s deputy director, praised the Supreme Court’s decision in a statement on Thursday, noting, “We applaud the Supreme Court for this groundbreaking decision which will end the persistent alleged misappropriation of trillions of FAAC allocations or public funds meant for local governments.”
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Oluwadare continued, “Following the Supreme Court judgment, there is now a clear legal precedent to hold governors and the FCT minister accountable for how they have spent the local government funds collected by them.”
He emphasized, “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.”
SERAP warned that if the governors and FCT minister do not account for and return the funds meant for local governments within seven days, the organization will consider appropriate legal actions to compel compliance in the public interest.
Highlighting the public interest, SERAP stressed the necessity for transparency and accountability in the handling of local government funds since 1999.
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The organization said, “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 local governments to effectively and efficiently discharge their constitutional and statutory responsibilities.”
SERAP pointed out that the 36 states and the federal capital territory have reportedly collected over N40 trillion in federal allocations intended for the 774 local government areas in Nigeria.
Specifically, the Federation Account Allocation Committee disbursed N225.21 billion in federal allocations meant for local governments to states in November 2023, and another N258.81 billion in December 2023.
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The Attorney General of the Federation, Lateef Fagbemi, had filed a lawsuit on behalf of the Federal Government seeking to grant full autonomy and direct funding to all local government councils in the country.
The 36 state governments, represented by their attorneys general, challenged the Supreme Court’s jurisdiction in this matter.
On Thursday, the Supreme Court ruled in favor of the Federal Government, setting a precedent for the financial autonomy of local governments across Nigeria.
