Bill To End State Interference in Local Government Finances

Opatola Victor a legal practitioner and policy advocate has submitted a proposal to the National Assembly, urging legislative intervention on local government allocations.

His letter, addressed to Senate President Godswill Akpabio, Speaker House Of Representatives, Attorney General Of Federation and other top legislative officials, underscores an urgent need to protect federal allocations to local government councils from state interference.

The proposal is rooted in the constitutional powers vested in the National Assembly under Section 7(6)(a), and seeks to address the persistent problem of state governments controlling funds meant for grassroots development inspire of the recent Supreme Court Judgement on Local Government financial autonomy.

Mr. Opatola’s proposal draws attention to a fundamental gap in the current legal framework governing local government allocations.

While Section 7(6)(a) of the Constitution empowers the National Assembly to legislate on federal allocations to local councils, Section 7(6)(b) gives state assemblies the power to legislate on state-sourced allocations. This distinction has often been blurred, with state governments extending their influence over funds provided by the federal government, leading to mismanagement and the diversion of resources away from their intended purpose.

He further stated that even if one were to argue that both the National Assembly and state assemblies share concurrent powers to legislate on local government finances pursuant to Part II, Section 1(a)(iv) of the Constitution, the doctrine of “covering the field” comes into play. This doctrine, long established in Nigerian constitutional law, dictates that where the National Assembly has made laws on a particular matter, such laws take precedence over any conflicting state legislation. Mr. Opatola’s letter  argues that, in the case of federal allocations to local governments, this principle should ensure that federal laws override any attempt by state governments to control these funds.

In support of his call, Mr. Opatola has attached a draft bill to his letter, outlining specific provisions to ensure the direct disbursement of federal allocations to local government councils. The bill aims to prevent any deductions or withholdings by state governments and mandates the transparent management of funds by local councils. It also includes robust measures to enforce accountability, requiring local governments to maintain accurate financial records and submit annual reports on their expenditure.

Additionally, the proposed law would bar any state-imposed financial obligations or levies that could undermine the capacity of local governments to use federal funds. Local councils would also be empowered to seek legal recourse if state governments attempt to interfere with their financial autonomy, ensuring that the integrity of federal allocations is protected for the good of the citizens at the grassroots.. The bill also calls for mandatory annual audits of local government finances, with severe penalties for any official found obstructing the proper use of federal allocations. The attached bill creates mechanisms for transparency and accountability in the management of these allocations at the local government level.

The National Assembly is now tasked with considering this proposal, which, if enacted, could radically improve the financial independence of local governments and enhance grass root governance and service delivery to millions of Nigerians at the local level.  Mr. Opatola’s efforts represent a significant push for legal reforms that would not only safeguard local government allocations but also ensure that federal resources reach the grassroots without interference.

The coming months will determine whether the National Assembly will act on this call, potentially setting a new standard for transparency and accountability in local government funding across Nigeria.

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