Soludo Signs Law To Regulate Local Government Funds, Calls Autonomy A ‘Recipe For Chaos’
Anambra State Governor, Charles Chukwuma Soludo, has described full financial autonomy for local governments as a “recipe for humongous chaos” in Nigeria. The governor made this assertion on Tuesday after signing the Anambra State Local Government Administration Law, which mandates local governments to remit a portion of their federal allocations to the state government.
Addressing the media, Soludo argued that granting complete autonomy to Nigeria’s 774 local government areas would be unsustainable and detrimental to development efforts.
“The absolute autonomy for local government areas in the country is an impossibility. In fact, it is a recipe for humongous chaos,” Soludo said, as reported by *The Punch*.
The newly signed law, passed by the Anambra State House of Assembly on Thursday, is designed to enhance transparency by channeling part of the local governments’ federal allocations into a state-controlled consolidated account. Soludo emphasized that the legislation is in line with the Nigerian Constitution, which grants state governments authority over local government administration under Section 7.
While a Supreme Court ruling on July 11, 2024, affirmed the financial autonomy of local governments, directing that allocations be sent directly from the Accountant-General of the Federation, Soludo maintained that state oversight was necessary for effective governance. He stated that the new law was not intended to undermine the Supreme Court’s judgment but rather to ensure local government finances are properly managed.
“The new laws by the Anambra House of Assembly are consequential to give operational life to the Supreme Court judgment and not to undermine it,” Soludo remarked. “If the State House of Assembly abdicates this constitutional duty, the Local Government will have no law on the use and management of its finances.”
The governor also addressed accusations of state governors mismanaging local government funds, dismissing the claims as baseless. He argued that public trust in governance was low and that such allegations often stem from people judging others by their own standards.
“Governors are often accused of seeking to ‘control’ LG funds, with insinuations that these funds are mismanaged. In a society where public office is seen as a ‘dining table’ and public trust is low, people judge others by their own standards,” Soludo said.
The law is expected to shape the administration of local governments in Anambra State, balancing the need for financial autonomy with state oversight aimed at ensuring transparency and accountability in local governance.
