Anambra State Governor Charles Soludo has introduced a controversial bill that threatens the autonomy of local governments in Nigeria.
This bill requires local government areas (LGAs) to remit a portion of their federal allocations into a consolidated account controlled by the state.
The proposal has sparked fears among lawmakers and citizens that it undermines the recent Supreme Court ruling upholding local government financial independence.
The bill contains several key sections that outline its requirements.
Section 13(1) mandates the establishment of a “State Joint Local Government Account.”
This account would serve as the repository for all federal allocations intended for the LGAs.
Section 14(3) requires each LGA to remit a percentage of its allocation to this consolidated account within two working days of receiving their funds.
Additionally, Section 14(4) states that if the state receives the LGA’s allocation on their behalf, it must deduct the specified percentage before disbursing the remaining funds.
This means that local governments could lose direct access to their federal allocations, severely limiting their financial autonomy.
The bill has received significant backlash from local lawmakers, particularly from the Labour Party.
Hon. Henry Mbachu, who represents Awka South I State Constituency, has been vocal in his opposition.
He has urged Governor Soludo to withdraw the bill, warning that it would compromise the financial independence of local government councils.
Mbachu emphasized that the bill contradicts the Supreme Court’s recent judgment on local government autonomy.
“If this bill passes, the state government will have a say in how funds meant for LGAs are shared. This goes against the spirit of the Supreme Court’s decision,” he stated.
Other Labour Party lawmakers, including Hon. Jude Umennajiego and Hon. Patrick Okafor, have also expressed their concerns.
They have distanced themselves from the bill, stating that they “equivocally stand with the overwhelming majority of Anambra people in upholding the constitution and the Supreme Court decision.”
This strong opposition reflects a broader sentiment among citizens who value the autonomy of local governments.
Despite the backlash, Governor Soludo has defended his bill.
He argues that it does not violate the Supreme Court’s ruling.
In his statement, he challenged anyone who believes the bill contravenes the court’s judgment to seek legal redress.
“The law is meant to streamline financial management and ensure accountability. It does not take away the autonomy of LGAs,” he asserted.
Soludo’s comments indicate that he believes the bill is necessary for the state’s financial management and oversight.
There are rising concerns that Anambra’s move could set a precedent for other state governments in Nigeria.
If the bill passes, it may inspire similar legislation in other states, threatening the financial autonomy of local governments across the country.
The Supreme Court, on July 11, 2024, delivered a landmark ruling affirming the financial autonomy of all 774 local government areas in Nigeria.
The court ruled that it was illegal and unconstitutional for governors to manage and withhold local government funds.
This ruling was seen as a victory for local governance and accountability.
The court also directed the Accountant-General of the Federation to pay local government allocations directly into their accounts.
Local government autonomy is crucial for effective governance in Nigeria.