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Soludo Seeks Bill for Remitting LG’s FAAC Allocations to State Account
Concerns have emerged in Anambra State that local government autonomy, recently upheld by the Supreme Court, may face a setback due to a new bill introduced by Governor Charles Soludo.
The bill seeks to compel local government areas (LGAs) to remit a portion of their federal allocations into a consolidated account controlled by the state.
Hon. Henry Mbachu, a member representing Awka South I State Constituency (Labour Party), raised alarm on Tuesday, urging the governor to withdraw the bill, which has been submitted to the Anambra State House of Assembly.
Mbachu argued that the bill, if passed, would allow the state government to share in funds meant for local government councils, potentially undermining their financial independence.
However, Governor Soludo defended the bill, asserting that it does not contravene the Supreme Court’s judgment on local government autonomy. He challenged anyone who believes otherwise to seek redress in court.
The Secretary to the Speaker of the Anambra State House of Assembly, Emma Madu, confirmed that the assembly passed the bill, titled Anambra Local Government Administration Law 2024, on Tuesday
A copy of the bill obtained by our correspondent shows that Section 13(1) 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) further mandates that each LGA must, within two working days of receiving their allocations from the Federation Account, remit a state-determined percentage to the consolidated account. This requirement applies even if the allocations are received directly from the Federation Account.
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.
Reacting, Mbachu expressed concerns over the bill’s potential to harm local government administration. He warned that the proposed deductions would restrict LGAs’ ability to manage their federally allocated funds independently
Mbachu called on President Bola Ahmed Tinubu to monitor governors who might undermine progress in local government elections by compelling elected chairpersons to divert funds to the state government.
The lawmaker cited the Supreme Court’s recent judgment, which granted financial autonomy to LGAs, as a significant step forward. He contended that the executive bill threatens this progress and could hinder efforts to ensure compulsory local government elections in the state.
Similarly, members of the Labour Party caucus in the Anambra State House of Assembly have distanced themselves from the bill.
The lawmakers – Hon. Jude Umennajiego (Onitsha South 2), Hon. Patrick Okafor (Onitsha North 2), Hon. Mazi Paul Oby (Orumba North), Hon. Nkechi Ogbuefi (Anaocha 1), Hon. Fredrick Ezenwa (Onitsha North 2), Hon. Kingsley Udemezue (Idemili North), Hon. Justice Azuka (Onitsha North 1) and Mbachu – spoke through their leader, Umennajiego yesterday.
“We equivocally stand with the overwhelming majority of Anambra people in upholding the constitution and the Supreme Court decision”, he said.
Responding on behalf of Governor Soludo, the Anambra State Commissioner for Information, Dr. Law Mefor, maintained that the House of Assembly acted within the law.
“Is it the Supreme Court that should donate power or the constitution? Does the Supreme Court make laws?” Mefor questioned, suggesting that the court’s judgment was merely an interpretation of the constitution and does not override it.
According to Mefor, Section 7 of the 1999 Constitution empowers State Houses of Assembly to enact laws regarding the administration and financial regulations of LGAs. He argued that the bill aligns with the Assembly’s constitutional mandate, urging those who oppose it to challenge it in court.
“The Supreme Court’s judgment does not, in any way, affect the constitution. Nobody is saying that local governments will not be autonomous,” Mefor added.
Meanwhile, political pundits have observed that should Anambra governor succeed with the bill, other state governors may follow suit to avoid ceding full autonomy to the local governments even while appearing to be abiding by the Supreme Court judgment.
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