Nigeria’s quest for local government autonomy has been a contentious issue since the country’s return to democratic rule in 1999.

Local government autonomy refers to the independence granted to local governments to manage their affairs without interference from higher levels of government. 

LGA autonomy has been a contentious issue for years in a country with 774 LGAs.

In 2022, the National Assembly proposed greater autonomy for LGAs through a constitutional amendment which failed at the state assemblies.

Subsequently, the Buhari administration’s attempt to limit cash withdrawals from LGA accounts through the NFIU was seen as an effort to curb state control by governors.

In May 2024, the  FG filed a lawsuit against all 36 state governors at the apex court. This suit, marked SC/CV/343/2024, seek to enforce full autonomy for LGAs. The government argues that state governors have excessive control over LGAs, hindering efficient governance at the local level.

Two key aspects addressed by the suit 

Financial Independence: The FG plans to abolish the state/local government joint accounts, giving local governments more control over their finances.

Protection from Unlawful Dissolutions: To prevent governors from arbitrarily dissolving democratically elected local government officials to strengthen democratic processes.

Historical Background 

The arrival of British colonial rule in the late 19th century fundamentally altered the landscape of local governance.

The British implemented a system of indirect rule, leveraging existing traditional authorities; however, their ultimate aim was greater control from the centre.

Consequently, Local autonomy was curtailed, with local leaders often serving as agents of the colonial administration.

Nigeria gained independence in 1960, inheriting a centralized administrative structure from the colonial era.

Nonetheless, the newly formed federation had to balance national unity with regional and ethnic diversity.

Early independence years witnessed efforts at decentralization, introducing regional governments and elected local councils.

The period of military rule that dominated much of Nigeria’s post-independence history saw a significant erosion of local government autonomy. Military regimes favored centralized control, often dissolving elected local governments and replacing them with appointed officials. This period further weakened the institutional framework for effective local governance.

The return to civilian rule in 1999 reignited the debate on local government autonomy. The 1999 Constitution recognizes local governments as a third tier of government but also grants significant control to state governments over local government finances and administration. This constitutional ambiguity has fueled ongoing legal battles and political contests.

Read more: Court declares Local Government Caretaker Committee unconstitutional

Legal provisions

The 1999 Constitution of Nigeria, as amended, contains several provisions that relate to local government autonomy.

1. Section 7(1): This section guarantees the system of local government by democratically elected councils. However, States also have the power to enact laws regarding the “establishment, structure, composition, finance, and functions” of these councils. 
2. Section 162(6): This section establishes the State Joint Local Government Account,”Each State shall maintain a special account to be called ‘State Joint Local Government Account’ into which shall be paid all allocations to the Local Government Councils of the State from the Federation Account and from the Government of the State.”
3. Section 8: This section outlines the process for creating new local government areas. It requires
   • A request supported by at least two-thirds majority of members representing the area in the House of Assembly and the National Assembly.
   • – A referendum approved by at least two-thirds majority of the people in the area.
   • – The result of the referendum approved by a simple majority of all the States of the Federation supported by two-thirds majority of members of each House of the National Assembly.
4. Section 7(6): This section empowers the National Assembly and State Houses of Assembly to make provisions for statutory allocation of public revenue to local government councils
5. Section 8(1): Empowers LGAs to function without undue interference from any person or authority (Constitution of the Federal Republic of Nigeria 1999).
6. Section 4(6): Lists the functions of LGAs, which include providing basic amenities and services to their communities (Constitution of the Federal Republic of Nigeria 1999).

Key Components of Local Government Autonomy in Nigeria

Local Government Autonomy (LGA) in Nigeria refers to the freedom of local governments to manage their affairs with minimal interference from higher levels of government. Achieving true autonomy requires a strong foundation built on several key components:

Local government autonomy encompasses political economy, financial autonomy and administrative autonomy.

1. Financial Autonomy

• Revenue Generation: Local governments should be empowered to generate their own revenue streams. This could involve property taxes, user fees for services like waste collection, and licensing local businesses. Reduced dependence on state and federal government allocations fosters a sense of ownership and incentivizes responsible financial management.

• Direct Access to Allocations: The Nigerian Constitution mandates allocations from the Federation Account for local governments. Direct access to these funds ensures they receive their fair share for development projects, bypassing potential diversion by state governments 

• Expenditure Authority: Local governments require the power to determine budget priorities and manage their finances effectively. This empowers them to address the specific needs of their communities, like improving healthcare facilities or investing in community infrastructure. 

2. Political Autonomy

• Elected Officials: Free and fair elections at the local level are crucial. Citizens deserve a say in who manages their communities and represents their interests. This fosters accountability and ensures local leadership reflects the needs of the people.

• Legislative Power: Local governments should have the authority to enact by-laws pertinent to their communities. This allows them to tailor policies to address local challenges, like regulating market activities or waste management within their jurisdiction.

• Security Control: Ideally, some level of control over local security matters would enhance LGA autonomy. Community policing initiatives managed by local authorities could foster a sense of ownership and accountability for security within their communities.

3. Administrative Autonomy

• Staffing Authority: The ability to recruit, train, and manage their own staff is vital for local governments. This ensures they have the necessary human resources with the skills and expertise to deliver services effectively.

• Planning and Development: Local governments should be empowered to develop their own development plans and strategies. This allows them to take a bottom-up approach to development, prioritizing what matters most to their communities.

• Service Delivery Mandate: Local governments should be responsible for delivering core services directly to citizens. This includes primary education, primary healthcare, sanitation, and maintenance of local infrastructure. Empowering them in this area allows them to directly impact the quality of life in their communities.

4. Judicial Autonomy

Independent Judiciary: A strong independent local judiciary is essential for resolving disputes and upholding the rule of law. This ensures fair and transparent governance, protecting citizens’ rights and holding local officials accountable.

Timeline on Supreme Court judgement on Local Government Autonomy in Nigeria

1. Attorney General of Lagos State v. Attorney General of the Federation (2004): In 2002, Lagos State, under Governor Tinubu, created 37 new Local Council Development Areas (LCDAs) in addition to the 20 LGAs recognized by the 1999 Constitution. This action was aimed at enhancing grassroots development. The FG, led by President Obasanjo, viewed this as unconstitutional and withheld statutory allocations for all local governments in Lagos State. 

Judgment: The Supreme Court ruled that state governments have the constitutional power to create and control local governments within their territories. The court held that it was within the constitutional powers of the state to create additional local governments. However, a ratification by the National Assembly must be done and included in the constitution for it to be legalized.

2. Osun State Independent Electoral Commission & Anor v. Action Congress & Ors (2010): The Action Congress (AC), an opposition party, challenged the authority of the Osun State Independent Electoral Commission (OSIEC) to conduct local government elections. The AC argued that the commission lacked true independence and its composition favored the ruling party. 

Judgment: The Supreme Court upheld the power of states, through their State Independent Electoral Commissions, to conduct local government elections. The court ruled that the constitution granted this power which cannot be usurped by any other body or organ.

3. AG Abia State & Ors v. AG Federation (2002)/

Although the 1999 constitution recognizes local governments as a tier of government, it however created ambiguities in financial relationships with other tiers. Section 162(3) of the Constitution provides for direct allocation of revenue from the Federation Account to all three tiers. Several state governments, led by Abia State, challenged this practice, arguing it undermined the federal structure by bypassing states in allocating funds to local governments.

Judgment: The Supreme Court affirmed the federal government’s power to allocate funds directly to local governments. The court held that this practice was in line with the constitutional provisions for revenue allocation. 

4. AG Lagos State v. AG Federation (2004): Following Lagos State’s creation of additional LCDAs in 2002, the FG began allocating funds directly to the 20 constitutionally recognized LGAs, bypassing the State Joint Local Government Account.

Lagos State viewed this as a violation of constitutional provisions on revenue allocation, arguing that all allocations to local governments should pass through the State Joint Local Government Account as stipulated in Section 162(6) of the 1999 Constitution.

Judgement; The Apex Court in this case ruled that the federal government cannot bypass states in allocating funds to local governments. The court held that such funds must pass through the State Joint Local Government Account as stipulated in the constitution.

5. Ekiti State Government & Anor v. Prince Sanmi Olubunmo (2016): In Ekiti State, Governor Ayodele Fayose, upon assuming office in 2014, dissolved the local government councils elected under the previous administration. Prince Sanmi Olubunmo and other elected local government officials challenged this dissolution, arguing it violated their constitutional right to a three-year tenure as stipulated in the Ekiti State Local Government Administration Law.

Judgment: The Supreme Court declared the dissolution of elected local government councils by state governors as unconstitutional. The court held that such actions violate the democratic rights of the elected officials and the electorate.

6. AG Rivers State v. AG Bayelsa State & Anor (2012) : The creation of Bayelsa State from Rivers State in 1996 led to disputes over the ownership of certain areas rich in oil resources, particularly in the Soku and Elem Sangama regions. Both states claimed these areas, which had significant implications for revenue allocation and local government administration. The dispute escalated when Rivers State accused Bayelsa State of creating local government structures in the contested areas, leading to this legal battle that touched on state powers to create and administer local governments.

Judgment: The Apex Court affirmed states’ power to create local government areas within their territories, subject to the constitutional amendment process.

7. AG Plateau State & Ors v. AG Federation & Anor (2006): The 1999 Constitution established the State Joint Local Government Account, through which funds allocated to local governments from the Federation Account are to be distributed. However, many local government officials complained that state governments were withholding or mismanaging these funds. Plateau State, along with several others, challenged the constitutional validity of federal oversight on this account, arguing it infringed on state powers and the principle of federalism.

Judgment: The Supreme Court upheld states’ control over local government finances through joint accounts. The court ruled that the State Joint Local Government Account system is constitutional and does not infringe on local government autonomy.

8. AG Abia & Ors v. AG Federation (2006):The establishment of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) by the 1999 Constitution (RMAFC) was given the mandate to monitor the accruals and disbursement of revenue from the Federation Account, including to local governments. Several states, led by Abia, challenged this oversight function, arguing it amounted to federal interference in state affairs and violated the principle of federalism.

Judgment: The Supreme Court ruled that the monitoring of local government allocation by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) is constitutional.