LG Autonomy: Concerns as Anambra Governor Soludo introduces bill to deduct funds

A bill introduced by Anambra State Governor Charles Soludo has sparked fears of undermining local government autonomy, which was recently upheld by the Supreme Court.

The proposed legislation requires local government areas (LGAs) to remit a portion of their federal allocations into a consolidated account managed by the state government.

According to Section 13(1) of the bill, the state will establish a “State Joint Local Government Account” into which all federal allocations for LGAs must be deposited.

Section 14(3) mandates that each LGA must remit a state-determined percentage to this consolidated account within two working days of receiving their allocations.

Additionally, Section 14(4 states that if the state receives an LGA’s allocation on its behalf, it must deduct the specified percentage before disbursing the remaining funds.

In response to the bill, Hon. Henry Mbachu, a Labour Party member representing Awka South I State Constituency, has called on Governor Soludo to withdraw it, arguing that it threatens the financial independence of local government councils.

Mbachu emphasized that the legislation could allow the state government to share in funds intended for LGAs, contradicting the recent Supreme Court judgment.

Other Labour Party lawmakers in the Anambra State House of Assembly, including Hon. Jude Umennajiego and Hon. Patrick Okafor, have expressed their opposition to the bill, stating their commitment to uphold the constitution and the Supreme Court’s decision.

Governor Soludo, however, has defended the bill, claiming it does not violate the Supreme Court’s ruling and challenging anyone who disagrees to seek legal recourse.

Concerns have also been raised that this move by the Anambra state government could set a precedent for other state governments.

This controversy follows the Supreme Court’s landmark ruling on July 11, 2024, which affirmed the financial autonomy of Nigeria’s 774 local government areas, declaring it illegal and unconstitutional for governors to withhold local government funds.

The apex court instructed the Accountant-General of the Federation to ensure that local government allocations are paid directly into their respective accounts.