By Oke Godwin Olaoluwa
On 11 July 2024, the Supreme Court of Nigeria delivered a landmark judgment affirming the constitutional autonomy of local governments in administering their affairs. Before this decision, there had been persistent controversies over the interpretation of Sections 1(1), (2) and (3), 4(7), 5(2)(a) and (b), 7(1) and (3), and 14(1), (2)(a), (2)(c) and (4) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), particularly regarding the powers of state governments and State Houses of Assembly over local government administration.
In granting the reliefs sought by the Attorney General of the Federation, the Supreme Court held that state governments have no constitutional authority to appoint caretaker committees in place of democratically elected local government officials. The Court further declared that state governments cannot withhold or control funds belonging to local governments. In its ruling, the Supreme Court affirmed that any money, including statutory allocations, grants, financial interventions, or palliatives accruing to any state on behalf of the local government, should be remitted immediately into the coffers of the local government councils.
The judgment has been widely applauded by stakeholders and policymakers, many of whom believe it marks a turning point for grassroots governance. Over the years, local government administration in Nigeria has become almost comatose, largely because statutory allocations have often been controlled by state governments. Many Nigerians believe that direct allocation of funds to local governments will stimulate grassroots development and improve service delivery in underserved communities. The recent kidnapping in the Orire community underscores the urgency: poor roads and a lack of school fencing — responsibilities of local councils — created vulnerabilities that criminals exploited.
However, beyond celebrating local government autonomy, equal attention must be paid to accountability, transparency, and fiscal discipline. Autonomy without accountability merely shifts the locus of financial abuse. A recent report by BudgIT on the transparency of local government budgets revealed that no local government council in Nigeria publishes its budget on a publicly accessible online platform. The report further indicated that only local government councils in seven states partially disclosed their budget documents, while fourteen states—including Lagos State—kept local government budgets largely hidden from public scrutiny.
The absence of budget transparency weakens accountability and creates fertile ground for fiscal profligacy and financial mismanagement. For instance, in March 2026, the Lagos State Government reportedly approved the appointment of about sixteen supervisors and special advisers for each local government council, up from six under the previous administration. Some local government chairmen have gone even further, appointing more than one hundred political aides. In one notable case, a chairman inaugurated 128 political appointees. Similarly, some local government administrations in Lagos State have marked their first anniversary in office by purchasing official vehicles for elected officials and political appointees and by organising empowerment programmes costing millions of naira. While some of these initiatives may have value, they also raise important questions about spending priorities.
The opportunity cost of burdening scarce local government resources with excessive political appointments and other discretionary expenditures is concerning. Every naira diverted to patronage is an additional classroom that is not built to reduce overcrowding in public schools. It is the medicines and equipment that are unavailable in primary healthcare centres, contributing to poor maternal and child health outcomes. It is the rural roads that remain impassable, limiting economic activities and access to essential services. The primary objective of the Supreme Court’s judgment was to ensure that local government resources are available for genuine grassroots development. Without strong fiscal responsibility, transparency, and accountability mechanisms, that objective risks being undermined.
As the Federal Government implements the Supreme Court’s judgment, it must also prioritise financial oversight. Consideration should be given to further amending Section 7 of the Constitution to establish a clearer legal framework for the administration, financing, and oversight of local government councils. The independence and oversight capacity of local government legislative councils should also be strengthened to provide effective checks on the executive arm. Furthermore, anti-corruption agencies such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) should be adequately empowered to monitor and investigate the finances of local government councils where necessary.
Ultimately, safeguarding local government autonomy is not merely about ensuring direct allocation of funds; it is about ensuring that those resources are prudently managed for the benefit of the people. Active citizen engagement, budget transparency, and robust institutional oversight are indispensable to achieving this goal. It is time for Nigerians to demand accountability at every level of government, beginning from the grassroots.
Oke Godwin Olaoluwa, an economist and public analyst writes from Ikorodu
