A proposed law by Governor Charles Soludo is sparking fresh concerns over local government autonomy in Anambra State.
The legislation would require Local Government Areas (LGAs) to channel part of their federal allocations into a state-managed account, raising fears of state interference.
The bill comes after the Supreme Court reaffirmed the financial independence of LGAs. However, many in Anambra worry that this new legislation could challenge that autonomy.
Hon. Henry Mbachu, representing Awka South I under the Labour Party, voiced strong opposition on Tuesday. He urged Governor Soludo to withdraw the bill, which has been introduced to the Anambra State House of Assembly.
Mbachu contended that if passed, the law would allow the state to access funds specifically meant for LGAs, thereby threatening their financial self-sufficiency.
Governor Soludo defended the proposal, stating that it aligns with the Supreme Court’s decision and welcomed any legal opposition to the bill.
Emma Madu, Secretary to the Speaker of the Anambra State House of Assembly, confirmed the passage of the “Anambra Local Government Administration Law 2024” by the assembly on Tuesday.
The legislation includes provisions such as Section 13(1), which mandates the creation of a “State Joint Local Government Account.” All federal funds allocated to LGAs must be deposited into this account.
Section 14(3) stipulates that LGAs must transfer a percentage of their federal allocations, as determined by the state, within two days of receiving them from the Federation Account.
Additionally, Section 14(4) allows the state to withhold a portion of the LGA allocations before distributing the remaining funds to the local councils.
Mbachu expressed concern that these deductions would impair the LGAs’ ability to manage their own funds.
He called on President Bola Ahmed Tinubu to monitor governors closely, warning that some might pressure local government leaders to divert funds to the state, ultimately undermining local elections and governance.
