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July 11, 2024 Supreme Court Declares Holding of Local Government Funds by Governors Unconstitutional

Supreme Court Declares Holding of Local Government Funds by Governors Unconstitutional

On Thursday, the Supreme Court ruled that it is unconstitutional for state governors to withhold funds allocated to Local Government (LG) administrations. In the lead judgment delivered by Justice Emmanuel Agim, the court noted that state governments have been denying financial autonomy to local governments for over two decades. Justice Agim stated that local governments have stopped receiving their allocated funds from state governors who manage these funds on their behalf. He emphasized that the 774 local government councils in the country should manage their funds independently.

The court dismissed the preliminary objections raised by the state governors. Despite there being 774 local government areas, the efficiency of this third tier of government has been hindered by governors accused of mismanaging local government funds. In recent months, calls for local government autonomy have intensified in Nigeria, with President Bola Tinubu also expressing support. In May, the Federal Government, represented by the Attorney-General of the Federation (AGF) Lateef Fagbemi, sued the 36 state governors over the alleged mismanagement of local government funds.

Currently, the Federal Government receives 52.68% of the country's monthly revenue, states receive 26.72%, and local governments receive 20.60%, as allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) and disbursed by the Federation Account Allocation Committee (FAAC). Local government funds are deposited into a joint account operated by state governments and local governments.

In the suit filed by the AGF, the Federal Government sought an order to prevent governors from arbitrarily dissolving democratically elected councils, listing 27 grounds for the suit. The state governors opposed the AGF's case. However, Justice Agim ruled that the AGF has the right to file the suit and uphold the constitution. The Supreme Court directed that local government allocations from the Federation Account should be paid directly to them, bypassing state government control. Justice Agim stated that state governors' retention of local government funds disrupts their operations and ordered immediate compliance with the judgment, ensuring that no state government receives funds intended for local governments.

 

 
 
 
 
 
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July 10, 2024 Agric Minister Predicts Significant Drop in Food Prices Within 180 Days

Agric Minister Predicts Significant Drop in Food Prices Within 180 Days

As Nigerians take to the streets to protest against hunger, the Minister of Agriculture and Food Security, Sen. Abubakar Kyari, announced on Wednesday that food prices are expected to drop within 180 days.

Kyari shared this information on his X (formerly Twitter) handle, outlining several measures to be implemented over the next 180 days:

  • 150-Day Duty-Free Import Window for Food Commodities: Suspension of duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through land and sea borders. Imported food commodities will have a Recommended Retail Price (RRP), with assurances that all standards for safety and quality will be maintained.
  • Government Imports: The Federal Government will import 250,000 metric tons each of wheat and maize, which will be supplied to small-scale processors and millers nationwide.
  • Stakeholder Engagement: Engaging with relevant stakeholders to set a Guaranteed Minimum Price (GMP) and purchase surplus food commodities to replenish the National Strategic Food Reserve.
  • Production Ramp-Up for 2024/2025 Farming Cycle: Supporting smallholder farmers during the current wet season and accelerating dry season farming. This includes aggressive agricultural mechanization, identifying irrigable lands, and collaborating with the Federal Ministry of Water Resources and Sanitation to maintain irrigation facilities.
  • Youth and Women Engagement: Encouraging immediate greenhouse cultivation of horticultural crops like tomatoes and peppers to increase production, stabilize prices, and address food shortages. Engaging with the Nigerian Military and other para-military establishments to utilize arable lands for cultivation.
  • Renewed Hope National Livestock Transformation Implementation Committee: This committee, inaugurated on July 9, 2024, will develop and implement policies prioritizing livestock development, aligning with the National Livestock Transformation Plan. A Ministry of Livestock Development has also been established.
  • Nutrition Security Enhancement: Promoting the production of fortified food commodities and supporting the scale-up of the Home Garden Initiative by the Office of the First Lady of Nigeria.

READ ALSO: Food Prices Set to Drop as FG Suspends Taxes on Imported Food Items

Over the next 14 days, Kyari stated that there would be close collaboration with the Presidential Food Systems Coordinating Unit (PFSCU) and the Economic Management Team (EMT) to finalize implementation frameworks, ensuring the public participation of all relevant stakeholders.

Kyari emphasized the importance of cooperation from all relevant MDAs and stakeholders, reiterating President Tinubu’s commitment to food security. He assured that his team would work diligently to implement these policies, aiming for immediate food security while also addressing long-term sustainability and resilience in Nigeria's food systems.

July 10, 2024 Tinubu Invites Labor Unions for Minimum Wage Discussions

Tinubu Invites Labor Unions for Minimum Wage Discussions

The Federal Government is nearing an agreement on a new national minimum wage, with President Bola Tinubu inviting organized labor, including the Nigeria Labour Congress and the Trade Union Congress, to a meeting at the Aso Villa on Thursday.

This information was revealed by a close source within the labor leadership, who preferred to remain anonymous, on Wednesday. The source stated that Tinubu is keen to resolve the ongoing minimum wage discussions and has summoned the presidents of both unions for a meeting.

July 10, 2024 Cattle Transport by Rail to Resume Soon – NRC

Cattle Transport by Rail to Resume Soon – NRC

The Nigerian Railway Corporation (NRC) has announced that herders and traders will soon be able to transport their cattle from northern Nigeria to the southern region via rail services. NRC Managing Director, Fidet Okhiria, shared this update on a monitored programme, following President Bola Tinubu's announcement of a new ministry for livestock development.

Okhiria revealed that cattle and other goods would be transported along the Warri-Itakpe route, resuming a service that had been suspended in 2017 due to technical issues. He mentioned that within the next one to two months, herders would be able to use the Warri-Itakpe train services for cattle movement. The Itakpe station is in Kogi State, North Central Nigeria, while Warri is in Delta State, South-South Nigeria.

The NRC plans to modernize goods transportation in the country, facilitating the movement of goods from northern regions by road to South-South Warri via rail. Okhiria noted that the NRC has brought in new wagons for livestock, currently being assembled in Kajola, Oyo State.

"We've built 15 wagons for livestock, and in the next month or two, they will be deployed from Itakpe to Warri to boost the economy," he said.

Okhiria emphasized that investments in railways should focus on social and economic benefits rather than immediate profit in monetary terms. He explained that the profits would be indirect, enhancing the economy by improving goods movement and city connectivity. According to him, the indirect earnings might not go directly to the government but would contribute to the broader economy.

He concluded that investments in rail infrastructure should aim to benefit the public and enhance the overall economy, making transportation more comfortable and efficient for the masses.

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