The bill requires local government areas (LGAs) to remit a portion of their federal allocations into a consolidated account controlled by the state.
Section 13(1) of the bill stipulates that the state shall maintain a “State Joint Local Government Account” into which all federal allocations to LGAs must be deposited. Section 14(3) of it mandates that each LGA must remit a state-determined percentage to the consolidated account within two working days of receiving their allocations. Meanwhile, Section 14(4) outlines that if the state receives the LGA’s allocation on their behalf, it must deduct the specified percentage before disbursing the remaining funds to the LGA.
Reacting, Hon. Henry Mbachu, a Labour Party member representing Awka South I State Constituency, has urged Governor Soludo to withdraw the bill, warning that it would compromise the financial independence of local government councils. Mbachu argued that the bill, if passed, would allow the state government to share in funds meant for LGAs, contrary to the Supreme Court’s judgment.
Labour Party lawmakers in the Anambra State House of Assembly, including Hon. Jude Umennajiego and Hon. Patrick Okafor, have distanced themselves from the bill, stating that they “equivocally stand with the overwhelming majority of Anambra people in upholding the constitution and the Supreme Court decision”.
Meanwhile, Governor Soludo has defended the bill, asserting that it does not contravene the Supreme Court’s judgment. He has also challenged anyone who believes otherwise to seek redress in court.
There are concerns that the move by the Anambra state government may be copied by other states governments.
It will be recalled that the Supreme Court, on July 11, 2024, delivered a landmark judgment affirming the financial autonomy of the 774 local government areas in Nigeria. The court ruled that it was illegal and unconstitutional for governors to manage and withhold local government funds. The apex court directed the Accountant-General of the Federation to pay local government allocations directly to their accounts.