The recent reaffirmation of local government autonomy by the Supreme Court faces potential hurdles in Anambra State as Governor Charles Soludo proposes a controversial bill aimed at regulating local government funds.
The bill, which mandates local government areas (LGAs) to transfer a portion of their federal allocations to a state-managed account, has sparked concerns about the future of local government autonomy. Hon. Henry Mbachu, representing Awka South I constituency under the Labour Party, expressed his reservations on Tuesday, urging Governor Soludo to withdraw the bill currently before the Anambra State House of Assembly.
Mbachu warned that the proposed legislation, if passed, would allow the state government to access funds intended for LGAs, undermining their financial independence. He emphasized the potential risk this bill poses to the councils’ ability to manage their federal allocations without interference.
Governor Soludo, however, defended the bill, maintaining that it aligns with the Supreme Court’s ruling on LGA autonomy and urged critics to challenge the law through legal means if necessary.
The Anambra State House of Assembly passed the bill, known as the Anambra Local Government Administration Law 2024, on Tuesday. The law mandates the establishment of a “State Joint Local Government Account” under Section 13(1), into which all federal allocations to LGAs are to be deposited.
Additionally, Section 14(3) compels LGAs to remit a percentage of their federal allocations, as determined by the state, within two business days. Section 14(4) further allows the state to deduct a specified amount from the LGA allocations before disbursing the remainder to the councils.
In response, Hon. Mbachu cautioned that the bill could severely hamper the administration of local governments in the state, curtailing their ability to manage their resources effectively. He called on President Bola Ahmed Tinubu to remain vigilant against governors who might exploit this legislation to manipulate local government elections and pressure elected chairpersons to transfer funds to state coffers.
The bill has reignited debate over the balance of power between state governments and LGAs, with many watching closely to see its broader implications for governance in Anambra and beyond.
