CRISIS OF STATE GOVERNMENT ON LOCAL GOVERNMENT ALLOCATIONS

The National Union of Local Government Employees (NULGE) has warned that it may take legal ac1tion if Anambra State Governor Charles Soludo or other governors introduce laws that contradict the Supreme Court’s ruling on direct allocation of funds to local governments. NULGE also called on President Bola Tinubu and Attorney General of the Federation, Lateef Fagbemi, to intervene and stop Soludo’s alleged efforts to prevent local government funds from being used by council chairmen for grassroots development.NULGE President Hakeem Ambali raised concerns about Soludo’s moves to bypass the Supreme Court’s judgment, which grants full financial and administrative autonomy to local councils. Ambali emphasized that the Anambra State House of Assembly’s recent passage of the 2024 Local Government Administration Bill could undermine local government independence by requiring council funds to be paid back to the state government.While Soludo defended the bill, claiming it does not violate the Supreme Court’s decision, Ambali argued that the governor’s actions are illegal and should be stopped. He called on the federal government to take proactive measures, including withholding local government funds from states that attempt to interfere with financial autonomy. Ambali did not rule out the possibility of NULGE going to court if the situation is not resolved.The Senate has also criticized moves by some state governors to create laws that would require local governments to deposit their allocations into joint accounts with state governments. On Wednesday, the Senate reaffirmed its support for the Supreme Court’s July 2024 ruling, which upheld financial autonomy for the 774 local governments in Nigeria. The Senate has urged all levels of government to comply with the judgment and plans to work with the House of Representatives to amend the Constitution to support local government autonomy.Local NULGE chapters in states like Ogun, Akwa Ibom, and Bayelsa have reported that their governors have not made any efforts to bypass the Supreme Court’s ruling. However, the Nigerian Financial Intelligence Unit (NFIU) is closely monitoring governors who may attempt to control local government funds. A senior official from NFIU confirmed that their mandate is to ensure local governments receive their funds directly, in accordance with the law.

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