Senate Criticizes Governors’ New Approach to Local Government Allocations Following Supreme Court Rulling
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On Wednesday, the Senate voiced its support for the Supreme Court’s ruling from July 11, 2024, which granted financial autonomy to all 774 Local Government Areas (LGAs) in Nigeria. The Senate criticized recent efforts by several governors to pass legislation requiring local councils to deposit their allocations into a joint state account.
This move follows the Anambra State House of Assembly’s passage of the Local Government Administration Bill 2024 on Tuesday, which faced backlash from civil society and opposition groups, including Labour Party members in the assembly. Critics argue that this bill is an attempt by Governor Chukwuma Soludo to pressure council chairpersons into returning their federal allocations to the state.
Reports indicate that similar bills are being considered in other states as well. During Wednesday’s session, the Senate urged all levels of government to adhere to the Supreme Court’s ruling and resolved to work with the House of Representatives to amend specific sections of the 1999 Constitution for effective implementation.
This resolution emerged from motions put forward by Deputy Senate President Jibrin Barau and supported by other senators. Barau emphasized the need for compliance with the Supreme Court ruling regarding the distribution and use of local government funds, advocating for constitutional amendments to guarantee local government autonomy.
However, the Senate faced challenges regarding the practical application of the Supreme Court decision at the state and local levels. Senator Tony Nwoye (LP, Anambra North) raised concerns about state governments attempting to bypass the ruling through contradictory legislation.
Nwoye, backed by nine co-sponsors, claimed that certain governors were drafting laws that would force local councils to funnel funds into the State/Local Government Joint Account, which the Supreme Court had previously ruled against. His motion prompted a heated discussion, with Senator Adamu Aliero (PDP, Kebbi Central) invoking a constitutional point of order, asserting that the Supreme Court ruling is binding nationwide and should not be debated.
Senate President Godswill Akpabio echoed this sentiment, pointing out that the constitution’s provisions regarding the Joint Account need revision to fully implement the Supreme Court’s decision. The ensuing debate led to confusion, prompting an emergency closed-door session where both motions were ultimately adopted.
Opposition Groups Condemn Anambra’s LG Administration Bill
In response to the passage of the LG Administration Bill in Anambra, opposition lawmakers criticized the Assembly for attempting to force local governments to remit federal allocations to the state, contrary to the Supreme Court’s order. They argued that such measures undermine local government autonomy.
During the session, the Speaker, Somtochukwu Udeze, defended the bill, asserting it clarifies the roles of local government chairpersons and councillors, particularly in areas like education and healthcare, where local and state governments interact.
However, Labour Party members expressed their strong opposition, arguing that specific sections of the bill sought to compel local governments to deposit their federal allocations into a state-controlled account, violating the Supreme Court’s directive. They reaffirmed their commitment to uphold the court’s ruling regarding local government financial independence.
Civil rights advocates, including Dr. Ralph Uche, labeled the bill as detrimental to grassroots development, arguing that it seeks to redirect local government funds away from their intended purposes.
The Speaker’s office confirmed that the bill was passed with 26 lawmakers present, stipulating that all federal allocations to LGAs must be deposited into a “State Joint Local Government Account” and that LGAs must remit a state-determined percentage of their allocations within two days of receipt.
Oyo State Awaits Recommendations on Supreme Court Ruling
In Oyo State, Governor Seyi Makinde stated that the government is awaiting the findings of two committees established to assess the implications of the July 11 Supreme Court ruling granting financial autonomy to local governments. These committees, tasked with providing recommendations, were set up shortly after the ruling, but their reports are still pending.
The governor’s spokesperson clarified that the committees are still deliberating and that the state is also waiting for a framework from the federal government to facilitate the ruling’s implementation. The spokesperson emphasized that Governor Makinde is not attempting to undermine the ruling but is focused on addressing potential issues that could arise from it.
The situation highlights the need for clarity and cooperation among all levels of government to ensure local governments can operate effectively and maintain their financial independence
as intended by the Supreme Court.
