In a motion submitted to the Senate, Senator Tony Okechukwu Nwoye, who represents the Anambra North Senatorial District, emphasised the critical need to stop state governments in Nigeria from passing legislation that compromise the financial independence of local governments.
Concerns that state assemblies are eroding constitutional provisions and the Supreme Court’s decision on local government autonomy are cited in the motion, which is being presented as an urgent matter of public interest.
During his speech, Senator Nwoye revealed that a number of state governments are using their Houses of Assembly for political purposes in order to adopt laws that are in direct opposition to the ruling of the Supreme Court and the 1999 Constitution.
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He noted that such actions stifle local governance and development, raising alarms that they could lead to the “extinction” of local governments.
The Co-Sponsors, Senator Steve Sunday Karimi, Senator Ali Sharafadeen, Senator Kelvin Chukwu, Senator Kawu Samaila, Senator Augustine Akobundu, Senator Ned Nwoko, Senator Osita Izunaso, Senator Patrick Nwabueze, Senator Titus Zam, Senator Diket Plang, and Senator Enyinnaya Abaribe, are worried that these actions by state governments and their Houses of Assembly, if unchecked, will “kill, and lead the local governments into extinction.”
Others involved include Senator Jarigbe Agom, Senator Abdulzaziz Ya’radua, Senator Emmanuel Udende, Senator (Amb.) Abdulhamid Madori-Ahmed, Senator Sani Musa, and Senator Dr. Yunus Abiodun Akintunde, and Senator Binos Yaroe.
They emphasised that these infractions put at risk the independence provided by Section 7 of the Constitution, which creates local government councils that are freely elected and guarantees their financial and administrative independence.
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On July 11, 2024, the Supreme Court handed down a historic ruling directing all monies owed to the 774 local government units from the Federation account to be paid into their accounts directly, as opposed to going through state accounts.
According to him, the decision upholds the constitutional clause that gives local governments financial independence and aims to shield them from excessive intervention by state governments.
Senator Nwoye voiced worry over continued efforts by some state governments to pass laws that erode this autonomy notwithstanding these constitutional protections.
He clarified that in order to essentially get around the Supreme Court’s decision, the statutes frequently mandate that local governments send large amounts of their allocations to certain accounts under state supervision.
As the closest kind of government to the people, he says local government councils are an important part of the third tier of government. For grassroots infrastructure projects and public service delivery to occur, their financial independence is essential.
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The motion reads, “Urge the Accountant General of the Federation and the Honourable Minister of Finance to withhold the release of allocation to Local Governments apart from payment of salaries of staff in any state where law (s) have been passed by the House of Assembly creating any joint state Account by any guise OR undermining Local Government financial autonomy guaranteed by 1999 Constitution (as amended) and upheld by the Supreme Court in its landmark judgment delivered on 11th July 2024.
“Urge all State Houses of Assembly to desist from passing or where they have already passed the laws to repeal any legislation that infringes upon the financial autonomy of local governments as enshrined in 1999 Constitution (as amended) and upheld by the Supreme Court.”
It continues, “Mandate the Attorney-General of the Federation to take immediate legal action against any state government or State House of Assembly found to be in violation of the Constitution and the Supreme Court’s decisions on local government autonomy.
“Direct the Senate Committee on Local Government, anti-corruption and legislative compliance to work closely with the Office of the Attorney-General of the Federation, Accountant General of the Federation, Economic and Financial Crimes Commission, The Nigerian Financial Intelligence Unit, The Independent Corrupt Practices Commission, Presidential inter-ministerial committee to enforce the Supreme Court Judgment of 11th July 2024 granting financial autonomy to local governments in Nigeria to ensure strict enforcement of the Supreme Court Judgment on local government autonomy.
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“Request the National Assembly Committee on Constitutional review to review and, where necessary, amend relevant sections of the Constitution bordering on conduct of Local Government election and other laws to clarify and further strengthen the financial independence of local governments and prevent future infractions by state governments and their legislative arms.”
In order to prevent funds that are disbursed directly to local government accounts from being remitted back to accounts managed or controlled by state governments, Senator Nwoye called on the Nigerian Financial Intelligence Unit, the Economic and Financial Crimes Commission, and the Independent Corrupt Practices Commission to step up their monitoring of local government funds.
However, he made a plea to the public, media, and civil society organisations to hold local governments responsible by bringing attention to the value of local government autonomy and the negative consequences of ongoing state intervention.
According to information obtained by Anaedoonline.ng, the Senate rejected the seven resolutions that Senator Nwoye and the other sponsors had put forward.
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There was a two-resolution amendment.According to information obtained by Anaedoonline.ng, the Senate rejected the seven resolutions that Senator Nwoye and the other sponsors had put forward.
There was a two-resolution amendment.
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