In a judgment on Thursday, the Supreme Court of Nigeria affirmed that local government areas (LGAs) led by caretaker committee chairmen are not entitled to receive funds from the Federation Account Allocation Committee (FAAC). This decision explains the necessity for democratic elections at the local government level to access federal funds.
Senior Advocate of Nigeria, Mike Ozekhome, discussed the implications of the ruling on Channels Television’s program, The Morning Brief, on Friday. Ozekhome highlighted the clarity of the judgment, stating, “The judgement of the government is clear. If you want to receive funds from the federation account, then conduct an election. If what you have in place is a caretaker committee as local government chairman, be sure that it will not have money from the federation account.”
The Supreme Court’s decision also impacts development council areas created by states such as Lagos, which are now ineligible to receive funds from FAAC unless they are democratically elected. Ozekhome explained, “What this law is saying is that if you are not a democratically elected local government council, you cannot have this money under section 162 subsection 5 and 6 of the 1999 Constitution.”
He elaborated on the allocation process, emphasizing that only constitutionally recognized local governments are entitled to federal funds. “Money should now be ploughed to those local governments that are in existence democratically,” Ozekhome said. “They can do that internally to share. That is their internal business, nobody can control that one. But for now, the money can only go to those local government areas named in the constitution. Don’t forget they are even named in the constitution, 774 local governments.”
This ruling compels states to ensure that their local government councils are democratically elected to access federal allocations, reinforcing the importance of adhering to the constitutional provisions regarding local government administration….Discover _ More