Former Vice President Atiku Abubakar has hailed the Supreme Court’s decision granting financial autonomy to local government councils, saying it is a “win for the people of Nigeria.”
In a lead judgement delivered by Justice Emmanuel Agim on Thursday, the Supreme Court mandated the Federal Government to begin the direct payment of local government funds into their exclusive accounts, condemning the longstanding denial of financial autonomy by state governments.
Atiku responded to the ruling, describing it as a major step towards enhancing national development.
“The judgment of the Supreme Court earlier today affirming fiscal autonomy to local government councils in the country is a win for the people of Nigeria,” Atiku said in a statement on his X account on Thursday.
“The court’s ruling is a step in the right direction and a major corrective action in greasing the wheels of national development across the country.”
He emphasised that the court’s decision corrects a political misstep and supports the three-tier structure of Nigerian governance, positioning local governments as pivotal centres of development.
Atiku, a former presidential candidate of the Peoples Democratic Party (PDP), argued that local government autonomy should extend beyond revenue from the Federation Account to include Internally Generated Revenue (IGR).
He noted that many states, especially those with dense economic activities, often inhibit local councils from generating revenue from various sources such as motor parks, outdoor advertising, and rents.
He lauded the Supreme Court’s decision as consistent with its role as an arbitrator among governments.
The statement continued, “The decision by the Federal Government to consolidate disbursements of local councils’ revenues into the state government accounts was a decision that was borne out of politics of hasty compromise.
“I align with the decision of the Supreme Court that the structure of the Nigerian government is portioned in three layers, and of these, the local governments should be centres of development.
“I also share the belief that fiscal autonomy to the local governments should not be limited to revenues from the Federation Accounts, but indeed, should apply to Internally Generated Revenue from the respective local government authorities.
“Many of our states, especially those in the ultra urban areas with high density economic activities, have become notorious in muscling local councils from generating revenue on items that border on motor parks, outdoor advertising, rents and many more.
“The verdict of the court is in tandem with the core functions of the Supreme Court as an arbitration court between and among governments.”
