Governor Charles Soludo’s recent proposal for legislation may pose a threat to local government autonomy in Anambra State, raising concerns among representatives and citizens.
The proposed bill mandates that local government areas (LGAs) transfer a portion of their federal allocations into a unified account controlled by the state, sparking fears of reduced financial independence for local councils.
Hon. Henry Mbachu, a member of the Labour Party representing Awka South I, has expressed strong objections to the bill, urging the governor to withdraw it from consideration by the Anambra State House of Assembly.
Mbachu argued that the legislation undermines the Supreme Court’s reaffirmation of local government autonomy, enabling the state government to access funds meant for LGAs.
Despite these concerns, Governor Soludo maintained that the bill is consistent with the Supreme Court’s ruling, suggesting that any opposing parties should seek legal recourse if they disagree.
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The Anambra State House of Assembly has already approved the bill, which establishes a “State Joint Local Government Account.” This requires all federal allocations for LGAs to be deposited into this account.
Under the proposed law, local governments are compelled to remit a set percentage of their allocations to the consolidated account within two business days of receipt, even if the funds originate directly from the Federation Account.
Additionally, the state would withhold a percentage of these allocations before disbursing the remaining funds to the LGAs.
Mbachu had raised alarms about the detrimental effects this legislation could have on local government operations, emphasizing that the mandated deductions might severely limit their ability to manage federally allocated resources effectively.
He had called on President Bola Ahmed Tinubu to monitor state governors to prevent interference in local government elections and ensure that elected officials can operate without undue pressure from the state.
