The Supreme Court has ordered that the federal Government should forthwith pay allocations due to Local Government from the federation account directly.
Justice Emmanuel Agim, while delivering judgement on Thursday in the suit filed by the Federal Government against the 36 state governors seeking full autonomy for the 774 local governments in the country held the LG allocations should no longer be paid thorough states.
Read also: UPDATED: States’ retention of LG’s federation funds unconstitutional, says Supreme Court
The Justce stated that the practice of paying LG allocation throgh states has been abused over the years by states.
“I hold that the federal government pay LG allocations to the Local Government directly”, Justice Agim held.
Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice had in suit argued that states retention of money due to states is in violation of Section 162 of the 1999 constitution which provides for distribution of funds tp all tiers or government.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
