*Supreme Court orders seized funds released
*It's celebration galore
ABUJA: The Supreme Court yesterday declared as unconstitutional, null and void seizure by President Olusegun Obasanjo of allocations from the federation account to local governments in Lagos State on account of the creation of more councils in the state.
But the court also ruled that the creation of the local government did not follow constitutional procedure although it refused federal government's prayers to nullify the March 27, 2004 election conducted into 37 new councils.
According to the court, all the parties interested in the elections, namely the chairmen-elect as well as the Lagos State Independent Electoral Commission were not joined as respondents in the case.
It also refused to grant an order to restrain the Lagos State Government, the Lagos State House of Assembly or any other functionaries or agencies not to finance and recognise any local government apart from those created under Part 1 of the First schedule of the 1999 constitution.
According to the court, the National Assembly could still at any time it deems fit, exercise its powers under section 8 (5) of the constitution to amend section 3 (6) and Part 1 of the First Schedule to the constitution.
According to the apex court, though the state has constitutional powers to create local councils, in the event such is to be created, the constitutional procedure must be followed.
The court specifically held that in the instant case, the Lagos State government exercised its constitutional powers to create the local councils but that the process of the creation was incomplete since the newly created local councils were yet to be approved by the National Assembly as stipulated by the constitution.
Delivering the lead judgment yesterday, the Chief Justice of the Federation, Justice Muhammadu Lawal Uwais ordered that the controversial outstanding statutory allocation withheld by the Federal Government should exclusively be for the 20 local government areas recognised by the constitution.
It would be recalled that the Lagos State government had in May, this year dragged President Olusegun Obasanjo to court for withholding statutory allocation due to local governments in the state.
President Obasanjo who withheld the allocation cited illegal creation of 37 local councils in the state as reason.
He had specifically said that until there was a reversal to the old twenty local councils recognised by the constitution, the allocation would not be released.
The court said the President has no power vested in him (by executive or administrative action) to suspend or withhold for any period whatsoever the statutory allocation due to Lagos State government pursuant to the provision of section 162 (5) of the1999 constitution in respect of the 20 local government areas for the time being provided by section sub section (6) of the constitution.
Justice Uwais declared that the intention or proposal of the Federal Government to suspend or withhold for any period whatsoever the statutory allocation due payable to Lagos State government pursuant to the provisions of section 162 (5) of the Federal Republic of Nigeria 1999 is unlawful as it is contrary to the provisions of the constitution.
He however expatiated on the position of the court by saying that the judgment covered only the 20 local government councils for the time being recognised by section 3 sub section (6) and part 1 of the First Schedule to the Constitution.
The court further held that the 57 local government areas established by Lagos are inchoate until the National Assembly passes the Act necessary under section 8 (3) of the constitution.
Therefore the new 57 local government councils are not entitled to receive fund from the Federation Account.
The apex court refused the prayers of the Federal Government to nullify the elections conducted by Lagos State on March 27, 2004 because all the parties interested in the elections, namely the chairmen-elect as well as the Lagos State Independent Electoral Commission were not joined in the case.
Six other justices of the apex court: Idris Legbo Kutigi; Anthony Ikechukwu Iguh; Samson Odemwingie Uwaifo; Niki Toby; Dennis Onyejife Edozie and Sunday Akinola Akintan all agreed with the lead judgement of Uwais.
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