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FENRAD Hails Supreme Court Ruling on LGA Funds: A Milestone for Grassroots Governance and Accountability

Aba, Nigeria – July 12, 2024
In a monumental decision, the Supreme Court of Nigeria has barred state governors from holding and spending Local Government Area (LGA) funds, a ruling that has been met with widespread acclaim from advocacy groups and citizens alike. The Foundation for Environmental Rights, Advocacy, and Development (FENRAD), a prominent human and environmental rights organization based in Abia State, has lauded this ruling as a victory for grassroots governance and accountability.

FENRAD has long championed the cause of local governance autonomy, and this ruling aligns with their advocacy for transparency and accountability within Nigeria’s governance framework. The Supreme Court’s decision underscores the importance of empowering LGAs, enabling them to manage their resources independently and address the unique needs of their communities effectively.

The Constitutional Context

The ruling addresses a critical gap in Nigeria’s 1999 Constitution, which, despite its amendments, has often been exploited by state governors to centralize control over LGA funds. According to FENRAD, the ambiguity in Section 2 (2) of the constitution, which states, “Nigeria shall be a federation of thirty-six states and the FCT,” without explicit mention of local governments, has been a significant factor in the misappropriation of LGA resources.

State governors have used this loophole to justify the creation of development councils and other administrative bodies that siphon off funds meant for LGAs. The practice has led to the erosion of grassroots democracy and the stifling of local development initiatives. Former Governor Rauf Aregbesola’s creation of Local Council Development Areas (LCDAs) in Osun State is a notable example of this exploitation.

Section 7 (1) of the constitution guarantees “a system of democratically elected government within the local council areas,” yet it also empowers states to oversee the councils’ survival, structure, finance, governance, and composition. This dual mandate has allowed governors to exert undue control over LGA funds, often to the detriment of local communities.

The Implications of the Supreme Court Ruling

The Supreme Court’s decision reaffirms the constitutional mandate that LGAs must be autonomous entities, free from the financial stranglehold of state governments. This autonomy is crucial for fostering a system where local governments can effectively address their communities’ needs, promoting sustainable development from the grassroots up.

FENRAD emphasizes that the proper administration and utilization of LGA funds will have far-reaching positive impacts. With direct access to their allocated funds, local governments can improve infrastructure, enhance social services, and implement community-driven projects. This will not only uplift the standard of living at the grassroots level but also stimulate local economies and create job opportunities.

Moreover, the ruling sets a precedent for good governance and accountability across all levels of government. It sends a clear message that financial mismanagement and the unlawful diversion of public funds will not be tolerated. This is expected to foster a culture of integrity and responsibility among public officials, leading to more transparent and effective governance.

A Call to Action

In light of the Supreme Court’s ruling, FENRAD calls on all state governors to comply fully with the decision and ensure the immediate release and appropriate utilization of LGA funds. The organization urges the federal government and relevant oversight bodies to enforce this ruling rigorously and monitor its implementation closely.

FENRAD remains committed to advocating for policies that promote good governance, transparency, and sustainable development. The organization will continue to monitor the situation and work with relevant stakeholders to ensure that the benefits of this landmark decision are fully realized.

A Victory for Grassroots Development

For years, the misappropriation and diversion of LGA funds by state governors have significantly hampered grassroots development. Local councils, which are the closest administrative bodies to the people, have often been deprived of the necessary financial resources to execute developmental projects and provide essential services. This has not only stifled local development but also eroded public trust in the governance structures meant to serve them.

The Supreme Court’s ruling is a reaffirmation of the constitutional mandate that LGAs must be autonomous entities, empowered to manage their resources independently. This autonomy is crucial for fostering a system where local governments can effectively address the unique needs of their communities, thereby promoting sustainable development from the grassroots up.

Conclusion

FENRAD’s endorsement of the Supreme Court’s ruling reflects the organization’s commitment to advancing grassroots governance and accountability. This decision is not just a victory for the rule of law but a triumph for the millions of Nigerians who rely on local governments for essential services and development. It is a crucial step towards building a more equitable, accountable, and prosperous Nigeria.

For further information, please contact:

Comrade Nelson Nnanna Nwafor
Executive Director
Foundation for Environmental Rights, Advocacy & Development (FENRAD Nigeria)
Tel/WhatsApp: 08033383708, 07062949232
Email: fenradnigeria@yahoo.com, info.fenradnigeria@gmail.com
Website: www.fenrad.org.ng
Twitter: @FENRADNIGERIA
Facebook: @FENRADNIGERIA
Instagram: @FENRADNIGERIA
LinkedIn: @FENRADNIGERIA

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