Unmasking Legislative Powers of FCT Area Councils: Lessons from Abuja Municipal Area Council v. Planned Shelter Ltd

By P.L. Osakwe

■ Introduction

The question of what powers Nigeria’s Local Governments, particularly the Area Councils of the Federal Capital Territory (FCT), can lawfully exercise has long lingered in legal and administrative circles. Can an FCT Area Council make laws (by-laws) binding on individuals and corporate entities within its jurisdiction? And if so, what is the constitutional limit of that power?

These concerns were judicially clarified in the landmark decision of the Court of Appeal in Abuja Municipal Area Council v. Planned Shelter Ltd & 6 Ors. (2020) LPELR-50494 (CA). The judgment not only reaffirmed the legislative powers of Area Councils but also set crucial guardrails on how those powers must be exercised.

■ The Legal Backdrop: FCT and the Constitution

Unlike the 36 states in Nigeria, the Federal Capital Territory (FCT) is administered directly by the Federal Government. By virtue of Section 299 of the 1999 Constitution, the National Assembly assumes both federal and state legislative responsibilities for the FCT.
Consequently, the Area Councils in the FCT serve as the equivalent of local governments, subject to the legislative authority of the National Assembly. This means their powers, including the ability to make by-laws, are not inherent but delegated.

■ The Case in Focus: AMAC v. Planned Shelter Ltd

In this case, the Abuja Municipal Area Council (AMAC) had enacted certain by-laws imposing levies and regulations on property developers and businesses within its jurisdiction. The 1st Respondent, Planned Shelter Ltd., challenged the legality of these by-laws, arguing that AMAC had acted without statutory authority.
The trial court ruled in favour of the Respondents, and AMAC appealed. At the Court of Appeal, a central issue emerged:

“Can an Area Council in the FCT validly make by-laws, and if so, under what authority?”

■ The Decision of the Court of Appeal

The Court answered the first part of the question in the affirmative:

“Yes, Area Councils possess the power to make by-laws.”

However, the Court went further to qualify this power. Drawing from constitutional principles, it stated emphatically that:

“The power of an Area Council to make by-laws is not absolute. It must derive from an enabling Act of the National Assembly. Any by-law not supported by such enabling legislation is ultra vires, and therefore invalid.”
Per Ugochukwu Anthony Ogakwu, J.C.A., at pages 34–36, paras D–B.

■ Key Legal Reasoning

1. Doctrine of Derivative Legislative Power
Area Councils in the FCT do not enjoy legislative autonomy. Their by-law making authority must be conferred by an Act of the National Assembly. This is consistent with the doctrine of legislative competence, which prohibits sub-national entities from acting outside powers expressly delegated to them.

2. Hierarchy of Laws
The Court underscored the principle that by-laws are subordinate legislation. They must align with both the Constitution and any parent statute from which they derive. Where a by-law contradicts or exceeds the scope of the enabling law, it is rendered null and void.

3. FCT-Specific Legal Structure
The Court acknowledged the unique status of the FCT, which lacks a House of Assembly. As such, only the National Assembly can grant legislative powers to Area Councils, unlike in states where state legislatures can delegate to local governments.

■ Implications for Governance in the FCT

This decision has far-reaching consequences for public administration and revenue collection in the FCT:
■ Regulatory Clarity: Area Councils must tie their by-laws to specific enabling Acts, such as the FCT Area Councils Law or other relevant statutes.
■ Prevention of Arbitrary Taxation: The ruling shields residents and businesses from unlawful levies that lack statutory basis.
■ Judicial Oversight: The judiciary remains a vital check on abuse of legislative authority at the local government level.

■ Conclusion: Power Within Limits

The judgment in AMAC v. Planned Shelter Ltd is a judicial balancing act. While it recognizes the legislative role of Area Councils, it firmly situates that role within the constitutional framework of Nigeria’s federal structure.

FCT Area Councils are not miniature parliaments. They are creatures of statute, empowered to act only within the boundaries set by the National Assembly. Any deviation invites judicial invalidation.

For policymakers and legal practitioners, the message is clear: Power may be delegated, but never presumed.