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This suit was commenced by the Federal Government of Nigeria through the office of the Attorney General of the Federation on the 24th of May, 2024 before the Supreme Court. By the originating summons, the Attorney General of the Federation sought to determine several key questions, including whether it was constitutional for State Governors to withhold funds allocated to Local Governments from the Federation Account, and whether Local Governments are entitled to direct payments from the Federation Account given the persistent failure of State Governments to disburse these funds.
The Plaintiff’s case was that the State Governors do not only withhold the funds that were originally allocated and intended for the use and development of the Local Government Councils, but have been seen in several occasions to have unconstitutionally removed democratically elected Local Government Chairmen and replaced them with “Caretaker Committee Chairmen” who are often times more accountable and loyal to the Governors than to the general masses at the grassroot level. This and others acts of the State Governors undermines democratic governance and severely disrupts the functioning of Local Governments. Consequently, many of Nigeria’s 774 Local Governments have been rendered ineffective, failing to serve their communities and to fulfill their intended roles.
The Federal Government argued that the acts of the State Government is a clear violation of the provisions of the Constitution and that the State Government are endangering the continued existence of the Local Governments as the third tire of government in Nigeria. The Plaintiff is seeking to reinforce the financial