Nigerian gov signs bill to deduct funds from LG allocations

Anambra State Governor, Prof. Chukwuma Soludo, has expressed concerns over granting full autonomy to Nigeria’s 774 local government areas, warning that it could lead to “humongous chaos” and hinder sustainable development.

Speaking at the Governor’s Lodge in Amawbia, Awka, on Tuesday after signing the “Anambra Local Government Administration Law 2024,” Soludo argued that absolute autonomy for local governments is impractical.

He highlighted the potential challenges that such a move would pose, suggesting it could create disorder rather than foster development.

The law, which was passed by the State House of Assembly last Thursday, provides a framework for local government administration within Anambra.

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“The absolute autonomy to the 774 local government areas in the country is an impossibility,” Soludo said. “In fact, it is a recipe for humongous chaos. The attendant challenges before the issue of local government autonomy are such that would certainly deepen the fate of the system and spell doom for the expected beneficiaries of the process if not well planned.”

Soludo explained that the new laws are consequential to the Supreme Court judgment and not intended to undermine it.

“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,” Soludo stated. “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.”

Platinumpost reports that 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.

(PoliticsNigeria)