Labour Party lawmakers from Anambra State have accused Governor Chukwuma Soludo of attempting to undermine local government autonomy through the introduction of the “Anambra State Local Government Administration Law 2024.”
At a press conference held at the National Assembly in Abuja, the lawmakers, including Senator Tony Nwoye, George Ozodinobi, Afam Ogene, Idu Emeka, and Anekwe Peter, raised concerns that the proposed law contradicts a recent Supreme Court ruling that grants financial independence to local governments.
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The Supreme Court, in a landmark judgment on July 11, 2024, ruled that local governments should receive funds directly from the Federation Account, bypassing state governments.
The Labour Party caucus argues that the proposed bill seeks to reverse this decision, depriving Anambra’s 21 local governments of their financial autonomy.
Senator Nwoye explained that the bill includes provisions that would allow the state government to control local government funds, specifically through Section 13, which establishes a State Joint Local Government Account.
This, the lawmakers claimed, is a clear violation of the Supreme Court ruling that bars state interference with local government finances.
In its judgment, Justice Emmanuel Agim of the Supreme Court ruled that states have no constitutional right to control or manage local government allocations.
The court underscored that local governments are entitled to direct funding from the Federation Account, without interference from state authorities.
The Labour Party lawmakers also criticized Section 14 of the proposed bill, which requires local governments to remit a percentage of their allocations to a consolidated account managed by the state.
They argued that this further violates the Supreme Court’s decision and undermines local government financial autonomy.
Additionally, they condemned Section 16 of the bill, which mandates that local governments contribute 20% of their allocations to a Local Government Joint Security Trust Account within two days of receiving funds from the Federation Account.
According to the lawmakers, this provision would financially weaken the local governments, making them reliant on the state.
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Quoting Justice Moore Adumein’s remarks from the Supreme Court ruling, Senator Nwoye warned that continued state control over local government allocations would suffocate and ultimately render local governments powerless.
He stressed that local governments should not be treated as extensions or colonies of state governments.
The Labour Party caucus urged Governor Soludo and the Anambra State House of Assembly to reconsider the proposed law and comply fully with the Supreme Court ruling, which is intended to enhance the financial independence of local governments across Nigeria.
They called for the preservation of local government autonomy to ensure effective grassroots governance and development.
