Prof. Chukwuma Soludo, the Governor of Anambra State, has signed the controversial Local Government Administration Law despite significant opposition.
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In signing the law on Tuesday, October 15, Soludo referred to it as a move towards complete autonomy for local government areas in Nigeria, warning that it could lead to chaos.
The Anambra State House of Assembly, led by Somtochukwu Udeze, passed the bill a week ago.
Since then, opposition political parties, civil society organizations, and other stakeholders have pressured the governor not to approve it.
However, Soludo maintained that the challenges surrounding local government autonomy are serious enough to undermine the system and jeopardize the intended benefits.
He pointed out that Section 7 of the constitution is relevant in this context, as it supports the enactment of laws for the administration of local government areas throughout the country.
He said: “This is where Section 7 of the Constitution comes in handy, and the Anambra State House of Assembly has risen to the occasion.
“Happily, the Supreme Court did not nullify Section 7 of the Constitution.
“The new laws by Anambra House of Assembly are therefore consequential to give operational life to the Supreme Court judgment and not to undermine it.
“If the State House of Assembly abdicates this constitutional duty, the Local Government will then have no law on the use and management of its finance which the Constitution has given the State House of Assembly the mandate to legislate on.
“Indeed, in many states, the House of Assemblies retain the power to suspend or remove chairpersons of local governments.
“By the way, isn’t the legislative authority exercised by the State Assemblies under Section 7 of the Constitution similar to the powers granted by the Constitution to the National Assembly over the Federal Capital Territory and its Area Councils?
“Governors are often accused of seeking to “control” LG funds with insinuations that LG funds are mismanaged.
“Of course, in a society where public office is seen as “dining table” and public trust is low, people judge others by their standards: by what they would do if they were in the position. I often ask: control for what?
“While I cannot hold brief for every governor, I know that most states are struggling to ensure a solvent local government system.
“I wish I could be spared the headache, if not for the predictable collateral damage to the system if we abdicate from structured oversight and collective accountability.
“Without active collaboration and coordination between state and local governments, many LGAs will end up in a huge financial mess, requiring bailouts by state governments or will FGN directly intervene in every case of insolvency among the 774 LGs?
He added: “The challenge ahead can be daunting given the quantum rise in wage bills because of the new minimum wage, as well as consequential rise in future pension/gratuity payments.”
“We inherited a local government system with four-year arrears (2018-2022) of gratuity to retired primary school teachers and other staff of local government.
“We have restructured their finances back to sustainability. Everyone who retired from the local government and State civil service since my tenure is paid gratuity/pension, and we are on course to clear the outstanding arrears soon.
“Most of the local government secretariats have been remodelled and equipped, and the LG system is once again alive.”
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