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BREAKING: Supreme Court Orders Funds be Paid to LGAs Directly (UPDATED)

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Nigeria’s Supreme Court has ordered governors of the country’s 36 states to henceforth steer clear of the funds meant for its 774 Local Government Areas.

The Apex Court says the control of funds of the local government councils by the States is unconstitutional.

This judgment is in respect of a lawsuit instituted by the Federal Government through the Attorney General of the Federation against the 36 state governors in a move to ensure full independence of the local government areas from the control of the state governors who until now controlled the funds and constitute caretaker committees to run the affairs of the local government areas.

In a landmark judgment delivered by a seven-member justice panel headed by Justice Lawal Garba, Nigeria’s Apex Court says the Constitution under Section 162 (4,5 and 6) doesn’t provide for the existence of a joint account for both the States and local government councils.

In the lead judgment prepared and read by Justice Emmanuel Agim the Court orders that, henceforth, funds meant for the Local Government Councils be paid to them directly from the Federation Account and not through the State governors.

The Court holds that the provision of the Constitution that funds meant for the local government councils be sent to the States is for them to act as agents of the Federal government for the onward disbursement of same.

It adds that the States are therefore not required to hold on to the money and use at will.

It holds that the States are exploiting the roles handed to them by the Constitution by holding onto funds meant for local government councils.

The Court also laments this has been on for over two decades, crippling the effective functioning of the third tier of government.On the aspect of the full autonomy of the Local Government Areas, the Apex Court says the state governors have for over 20 years constituted themselves “a species most dangerous” to the democratic structure of the local government councils.

It holds that Caretaker Committees installed by these governors is illegal as they have no powers to do so.

In a unanimous decision, the Apex Court further holds that the leadership of the local government councils must be by democratic means, insisting no state governor has the powers to dissolve democratically elected local government leadership and install their choice officials to run the local government councils.

As such, the Apex Court has also ordered the governors to desist from receiving, spending or tampering with funds released from the federation account for the local governments when no democratically elected local government system is put in place in the states.

It therefore holds that the constitution of Nigeria recognizes federal, states and local governments as three tiers of government and that the three draw funds for their functioning from the federation account created by the constitution.

The Apex Court orders immediate compliance by the state governors to the judgment.

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JUST IN: Dangote files new lawsuit against FGN over fuel import licences

The new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing they breach an earlier order to maintain the status quo.

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Dangote Petroleum Refinery has filed a new lawsuit against Nigeria’s attorney general in a bid to overturn fuel import licences issued to ‌marketers and the NNPC state oil firm.

Reuters reported that the new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing they breach an earlier order to maintain the status quo.

The case signals renewed tensions almost a year after Dangote withdrew an earlier lawsuit challenging similar licences.

That case sought to nullify import permits issued to the Nigerian ⁠National Petroleum Company and several traders.

NMDPRA did not immediately respond to a request for comment.

Regulators and marketers have previously argued imports are needed to ‌ensure ⁠adequate supply and prevent shortages.

Dangote said in the filing that the licences issued this month undermine its operations and contravene the law, which it argues allows imports only when domestic supply falls short.

Dangote ⁠ended the earlier lawsuit in July 2025 without explanation, leaving unresolved questions over competition and supply in one of Africa’s largest fuel markets.

Nigeria ⁠has long relied on petrol imports due to underperforming state refineries. Dangote’s $20 billion facility, with a capacity of 650,000 barrels ⁠per day, was billed to end that dependence, but imports have continued to cover supply gaps as the refinery ramps up output.

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NJC Suspends Two Judges for One Year Without Pay

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Rejects Appeals by Eight Retired Imo Judges

The National Judicial Council (NJC) has imposed fresh sanctions on judicial officers found guilty of misconduct, including the suspension of two High Court judges for one year without pay, while upholding the compulsory retirement of eight judges of the Imo State Judiciary.

The decisions were taken at the NJC’s 111th Meeting held on Tuesday, May 13, 2026, chaired by the Chief Justice of Nigeria, Hon. Justice Kudirat Kekere-Ekun.

Suspended Judges

Hon. Justice Ibrahim D. Shekarau of the Nasarawa State High Court was suspended for one year without pay over a petition filed by Oluwafunke Obale Ozozoma in Suit No. NSD/MG56M/2025. The NJC found that the judge granted an ex-parte order directing the transfer of N7 million from the petitioner’s bank account on the same day the application was filed and heard. The council ruled that there was no pending substantive suit, and the judge failed to verify the claims, acting in bad faith and breaching Rules 3.1, 3.3, and 3.5 of the Revised Code of Conduct for Judicial Officers (2016).

Similarly, Hon. Justice Edward A. E. Okpe of the Federal Capital Territory High Court was suspended for one year without pay following a petition by Mr. Sunday Emmanuel Oso in a matrimonial case (Suit No. FCT/HC/PET/529/2024). He was found to have granted an ex-parte application without proper notice to the petitioner and proceeded with committal proceedings in breach of fair hearing rules.

Imo State Judges

The NJC rejected appeals by eight compulsorily retired Imo State judges who were sanctioned for age falsification. The affected justices are:

  • Hon. Justice B.C. Iheka
  • Hon. Justice K. A. Leaweanya
  • Hon. Justice Okereke Chinyere Ngozi
  • Hon. Justice Innocent Chidi Ibeawuchi
  • Hon. Justice Ofoha Uchenna
  • Hon. Justice Everyman Eleanya
  • Hon. Justice Rosemond Ibe
  • Hon. Justice T. N. Nzeukwu

The Council, however, reinstated Hon. Justice T. I. Nze of the Imo State Customary Court of Appeal after he presented fresh and authentic evidence that warranted a review of his earlier retirement.

Other Decisions

During the meeting, the NJC considered 13 investigation reports and 98 petitions. It dismissed 73 petitions for lack of merit, want of diligent prosecution, or being time-barred. Four judges were cautioned, one received a final warning, and 11 petitions were sent for further investigation.

In a notable ruling, a petition against Hon. Justice Charles N. Wali of the Rivers State High Court concerning the Rivers State House of Assembly crisis was dismissed as unsubstantiated. The petitioner was recommended for referral to the Legal Practitioners Disciplinary Committee.

Several petitioners and lawyers faced sanctions for filing frivolous or reckless petitions, including referrals to the Inspector-General of Police and the Legal Practitioners Disciplinary Committee. One serial petitioner was barred from further submissions to the NJC.

The Council also commended nine judges for outstanding performance in the 2024 and 2025 legal years and issued 256 query letters to judicial officers over performance issues.

These actions underscore the NJC’s continued commitment to upholding discipline, integrity, and accountability within the Nigerian judiciary.

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NJC Recommends Elevation of 12 Judges to Court of Appeal, Includes Omotosho and Nwite

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The National Judicial Council (NJC) has recommended 12 Federal High Court judges for promotion to the Court of Appeal in a major elevation exercise aimed at strengthening Nigeria’s appellate judiciary.

The recommendation, which follows a rigorous shortlisting process by the Federal Judicial Service Commission (FJSC), was drawn from an initial pool of 48 nominees from Federal and State High Courts.

Among the prominent judges elevated are Justice James Kolawole Omotosho from Ogun State and Justice Emeka Nwite from Ebonyi State.

Justice Omotosho is widely recognised for presiding over the high-profile terrorism trial of Indigenous People of Biafra (IPOB) leader, Nnamdi Kanu. His rulings in the case drew significant national and international attention, frequently testing the balance between judicial independence, national security, and human rights considerations.

Justice Emeka Nwite, who sits in Abuja, has handled several sensitive political and constitutional cases, including election petitions and intra-party leadership disputes. He has been particularly noted for adjudicating contentious matters involving parties such as the African Democratic Congress (ADC) and other high-stakes political crises.

The NJC, as the constitutional body responsible for appointments and promotions in the superior courts, has now forwarded the list of 12 successful candidates. Their elevation to the Court of Appeal is now subject to formal notification by the President and confirmation by the Senate.

Full List of Recommended Judges:

  • Hon. Justice Raphael Ajuwa – Bayelsa State
  • Hon. Justice Ijohor M. Jennifer – Benue State
  • Hon. Justice Abua Elias Ojie – Cross River State
  • Hon. Justice Emeka Nwite – Ebonyi State
  • Hon. Justice Abodunde M. Oluwatoyin – Ekiti State
  • Hon. Justice Abdulhameed M. Yakubu – Gombe State
  • Hon. Justice Sanusi Kado – Katsina State
  • Hon. Justice Sabiu Bala Shuaibu – Kebbi State
  • Hon. Justice James K. Omotosho – Ogun State
  • Hon. Justice Ademola Enikuomehin – Ondo State
  • Hon. Justice Veronica Julcit Dadom – Plateau State
  • Hon. Justice Dauda Njane Buba – Taraba State

This latest batch of elevations is expected to bring fresh expertise and experience to the Court of Appeal, particularly in handling complex criminal, constitutional, and political matters.

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