By Milcah Tanimu
Anambra State Governor Charles Soludo has introduced a controversial bill that may undermine local government autonomy, a principle recently upheld by the Supreme Court. Specifically, the bill requires local government areas (LGAs) to deposit a portion of their federal allocations into a consolidated account controlled by the state.
In Section 13(1), the bill mandates that the state maintain a “State Joint Local Government Account.” This account will hold all federal allocations to LGAs. Additionally, Section 14(3) stipulates that each LGA must remit a percentage of their allocation to this account within two working days. Moreover, Section 14(4) states that if the state receives the LGA’s allocation, it must deduct the specified percentage before disbursing the remaining funds.
In response to this bill, Hon. Henry Mbachu, a Labour Party member representing Awka South I State Constituency, urges Governor Soludo to withdraw it. Mbachu warns that if passed, the bill would compromise the financial independence of local government councils. He emphasizes that the bill contradicts the Supreme Court’s ruling, which aimed to protect the fiscal autonomy of LGAs.
Furthermore, Labour Party lawmakers in the Anambra State House of Assembly have distanced themselves from the bill. They state that they “unequivocally stand with the overwhelming majority of Anambra people in upholding the constitution and the Supreme Court decision.”
On the other hand, Governor Soludo defends the bill by asserting that it does not violate the Supreme Court’s ruling. In fact, he challenges anyone who disagrees to seek legal redress.
This legislative move raises concerns, as other state governments may adopt similar measures. Consequently, this could threaten local government autonomy across Nigeria. Notably, the Supreme Court delivered a landmark judgment on July 11, 2024, affirming the financial independence of the 774 local government areas in Nigeria. Specifically, the court stated that governors could not manage or withhold local government funds. Instead, it directed the Accountant-General of the Federation to pay allocations directly into the LGAs’ accounts.
