THE TRUST NATURE OF THE STATE-LOCAL GOVERNMENT JOINT ACCOUNT IN NIGERIA: LEGAL MATTERS ARISING

Abstract

Trust has been described as a right enforceable solely in equity for the beneficial enjoyment of property the legal titleof which resides with another person; or, a property interest held by one person at ‘the request of another for thebenefit of a third party’1. The State Local Government Joint Account (SLGJA) would appear not be a property in thesense of this description. It may apparently be difficult to see how the SLGJA created by section 162(6) of theConstitution of the Federal Republic of Nigeria, 1999 (CFRN) would fit in as an object of trust. This paper sets out toestablish the trust status of the SLGJA, discuss states’ responsibilities over the SLGJAs and states’ violations of trustrules in administering these accounts. This paper also recommends legal enforcement of the rights of beneficiaries ofthe SLGJAs as a short term remedy and the scrapping of SLGJAs in the long run.