LG Autonomy: CTC Chairmen Will Not Receive FAAC Funds, Says Ozekhome

In a decisive ruling, the Supreme Court has clarified that local government areas headed by Caretaker Committee Chairmen will no longer receive funds from the Federation Account Allocation Committee (FAAC). This judgment, delivered on Thursday, July 11, 2024, underscores the necessity for democratic elections in local government councils to qualify for federal allocations.

Senior Advocate of Nigeria, Mike Ozekhome, discussed the implications of this ruling on Channels Television’s The Morning Brief on Friday, July 12, 2024. He emphasized that only democratically elected local governments are entitled to receive funds from the federation account, in accordance with Section 162 subsections 5 and 6 of the 1999 Constitution.

“The judgment is unequivocal,” Ozekhome stated. “To access funds from the federation account, local government councils must be democratically elected. Caretaker committee chairmen will not receive these funds.”

This ruling affects several states, including Rivers, Abia, Anambra, Katsina, Zamfara, Akwa Ibom, and Cross River, which have been using caretaker committees instead of elected councils. The Supreme Court’s decision mandates that funds can only be allocated to the 774 local governments named in the constitution.

Ozekhome further explained that while states can internally distribute the funds to development councils, the primary allocation from FAAC must go to constitutionally recognized local governments. “States may share the money internally, but the federal allocation is strictly for democratically elected councils,” he added.

The Supreme Court also reinforced that state governors cannot dissolve elected local government councils, thereby ensuring a consistent flow of funds to democratically established councils. This ruling aims to promote accountability and proper utilization of resources at the local government level.