How LG Autonomy Will Lead To Crisis – Governor Soludo Signs New Bill To Deduct Funds
Anambra State Governor, Prof. Chukwuma Soludo, has expressed concerns that granting full autonomy to Nigeria’s 774 local government areas could result in significant disorder and impede sustainable development.
His remarks came on Tuesday at the Governor’s Lodge in Amawbia, Awka, following the signing of the Anambra State Local Government Administration Law, known as the “Anambra Local Government Administration Law 2024.” This legislation was approved by the State House of Assembly the previous Thursday.
Governor Soludo emphasized that complete autonomy for local governments is unfeasible and could lead to chaos due to various challenges. He pointed out that Section 7 of the Nigerian Constitution empowers state governments to legislate on local government affairs, underscoring the necessity of state oversight.
“Granting full autonomy to the 774 local government areas is simply impossible,” Soludo stated. “In reality, it would create a scenario ripe for chaos. The challenges surrounding local government autonomy are such that they could further destabilize the system and harm those it is meant to benefit if not carefully managed.”
He clarified that the new legislation aligns with a Supreme Court ruling and is not designed to undermine it.
“The new laws enacted by the Anambra House of Assembly are meant to operationalize the Supreme Court decision, rather than contradict it,” Soludo explained. “Without this legislative framework, local governments would lack regulations governing the management and use of their finances.”
According to reports from POLITICS NIGERIA, the bill mandates that local government areas (LGAs) must contribute a portion of their federal allocations to a consolidated account overseen by the state. Section 13(1) stipulates the establishment of a “State Joint Local Government Account” for all federal allocations to LGAs, while Section 14(3) requires each LGA to transfer a state-determined percentage to this account within two working days of receiving their funds.
Additionally, Section 14(4) states that if the state receives the allocation on behalf of the LGAs, it must deduct the specified percentage before releasing the remaining funds to the local governments.
