Soludo signs new bill on councils to deduct funds from LG allocation

Post Date : October 16, 2024

Charles Soludo, governor of Anambra state, says the new laws passed by the house of assembly will give life to the supreme court’s verdict on local government autonomy.

Last week, the Anambra state house of assembly passed two “progressive” legislations into law.

The bills are the Anambra State Local Government Administration Bill 2024, and Anambra State Economic Planning and Development Bill 2024.

The legislations mandate LGAs to remit a portion of their federal allocations into a consolidated account controlled by the state government.

In July, the supreme court ruled that the federal government should pay allocations directly to LGA councils.

The seven-member panel of justices held that state governments have continued to abuse their powers by retaining and using the funds meant for LGAs.

The apex court also ordered the federal government to withhold allocations of LGAs governed by unelected officials — prompting states with caretaker committees to organize LGAs elections recently.

Soludo said the ruling on financial autonomy for LGAs would strengthen Nigeria’s evolving federalism.

“I have signed two progressive legislations by the Anambra house of assembly— the Anambra State Economic Planning and Development Law, 2024, and the Anambra State Local Government Administration Law, 2024 – into law,” the governor said.

“In our evolving federalism, I see the Supreme Court judgment on direct local government fund transfers as an important step towards effective, transparent resource administration and public good.

“Given the Constitutional mandate, I see the judgment as an opportunity for transparency, predictability, and coordination between State and local government, empowering LG administration.

“There’s more work to be done. How will LG funds be appropriated, spent, or accounted for? Who oversees their expenditure and ensures transparency?

“This is where Section 7 of the Constitution comes handy, and the Anambra State House of Assembly has risen to the occasion— happily, the Supreme Court did not nullify Section 7 of the Constitution.”

The governor noted that the new laws in Anambra state will make the judgement of the apex court operational.

“The new laws by Anambra House of Assembly are therefore consequential to give operational life to the Supreme Court judgment and not to undermine it,” he said.

“If the State House of Assembly abdicates this constitutional duty, the Local Government will then have no law on the use and management of its finance which the Constitution has given the State House of Assembly (and only the House of Assembly) the mandate to legislate on.

“State Assemblies can suspend/remove local government chairpersons. Isn’t their legislative authority under Section 7 similar to National Assembly’s power over Federal Capital Territory?”

“Many Nigerians ask the same question. I also understand that the Senate recently resolved to begin the process of Constitutional amendment in this regard.

“This is a welcome development. But until that is done, our laws pursuant to the Constitution and designed to give operational effect to the Supreme Court judgment remain subsisting and valid.”

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