On 11 July, the Supreme Court declared it unconstitutional for state governments to receive and control funds allocated to local government areas (LGAs) in their states.
The ruling provided a fillip to the financial autonomy of LGAs, and put to rest a controversy that had dominated political discourse in Nigeria for years.
Before the judgement, state governors exerted absolute control over federal allocations to LGAs, a practice which subverted fiscal federalism as enshrined in section 162 of the Nigerian constitution.
