New Challenge for LG Autonomy as Gov. Soludo Proposes Legislation for Fund Deductions.

The proposed legislation aims to compel local government areas (LGAs) to transfer a share of their federal allocations into a unified account managed by the state.

There are growing concerns in Anambra State that the local government autonomy, which was recently reaffirmed by the Supreme Court, could encounter challenges due to a new bill introduced by Governor Charles Soludo.

On Tuesday, Hon. Henry Mbachu, who represents the Awka South I constituency Labour Party, voiced his worries and called on the governor to retract the bill that has been presented to the Anambra State House of Assembly.

Mbachu contended that if the bill were to be enacted, it would enable the state government to access funds designated for local government councils, which could jeopardize their financial autonomy.

Governor Soludo stood by the bill, claiming that it aligns with the Supreme Court’s ruling on local government autonomy. He encouraged anyone who disagrees with his stance to pursue legal action.

The Secretary to the Speaker of the Anambra State House of Assembly, Emma Madu, has confirmed that the assembly approved the bill known as the Anambra Local Government Administration Law 2024 on Tuesday.

According to the bill, Section 13(1) specifies that the state is required to establish a “State Joint Local Government Account.” All federal allocations intended for Local Government Areas (LGAs) are mandated to be deposited.

According to Section 14(3), every Local Government Area (LGA) must remit a certain percentage, as set by the state, to the consolidated account within two business days of obtaining their allocations from the Federation Account. This requirement applies even if the allocations come directly from the Federation Account.

Section 14(4) specifies that when the state receives the allocation meant for the LGA, it is required to withhold a designated percentage before transferring the remaining amount to the LGA.

In response, Mbachu raised apprehensions regarding the bill’s potential negative impact on local government administration. He cautioned that the suggested deductions could limit the capacity of Local Government Areas (LGAs) to independently oversee their federally allocated funds.

Mbachu urged President Bola Ahmed Tinubu to keep a close watch on governors who could potentially hinder advancements in local government elections by pressuring elected chairpersons to funnel funds to the state government.