In a controversial move, the Anambra State Governor, Charles Soludo, has introduced a new bill seeking to allow the state government to deduct a portion of local governments’ federal allocations, despite a Supreme Court ruling affirming local government financial autonomy.
The proposed legislation, titled “Anambra Local Government Administration Law 2024,” mandates that local governments in the state remit a state-determined percentage of their federal allocations into a consolidated account controlled by the state government. This bill, presented to the Anambra State House of Assembly, has sparked opposition from lawmakers and members of the Labour Party.
Critics, including Henry Mbachu, a Labour Party member in the House, argue that the bill undermines the financial independence of local governments, violating the constitutional guarantee of their autonomy. Mbachu warned that such deductions would cripple local councils’ ability to manage their resources independently.
The Labour Party Caucus in the Anambra Assembly, led by Jude Umennajiego, has firmly rejected the bill, insisting that it contradicts the Supreme Court’s decision, which reinforced that local governments should receive their allocations directly from the Federation Account without state interference.
Despite the pushback, Anambra’s Commissioner for Information, Law Mefor, defended the bill, citing Section 7 of the Nigerian Constitution, which he claims grants state governments authority to oversee local councils’ finances and administration.
This development comes after the July 11 Supreme Court ruling, which declared it illegal for governors to control or withhold funds meant for local governments, marking a significant step in securing financial autonomy for Nigeria’s 774 local governments.