Debate on Local Government Financial Autonomy Resurfaces

The bill seeking financial autonomy for Local Government Area Councils in Nigeria, last week passed through second reading at the House of Representatives. Damilola Oyedele writes on the clamour for full autonomy of the third tier of government 

Closely linked to the ongoing calls for true federalism and restructuring of the country  is the clamour for the autonomy and independence of the Local Government  (LG) system by Nigerians. With 774 LGA in the country, the tier is globally recognised to be the closest governance structure to the people. Subject to the whims and caprices of State Governors, with severe limitations by the 1999 Constitution, the LGAs have lived far below expectations, and in most cases, are completely non-performing. In many states, they are only known to be ‘forceful’ collectors of levies and taxes, cleaners of markets, naming of streets and numbering of houses, registration of marriages, births and deaths, all of which are constitutionally  outline roles.

However because of the manner of the management, they have little or no input in other constitutionally outlined roles such as construction and maintenance of roads, streets, drains and other public highways, parks, the provision and maintenance of primary education, and health services.

Re-Introduction of the Autonomy Bill

But last week, a crucial step to free the LGAs was again taken by the House of Representatives, by passing through second reading an amendment seeking financial autonomy for the LGAs.

Named “ a Bill to Alter Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 and for other related matters” the amendment is sponsored by Hon. Nkeiruka Onyejeocha (Abia PDP). Onyejeocha’s bill  seeks to abolish the Joint States/LGA accounts, so the 774 local governments can directly receive from the Federal Allocation, same manner as the States. 

It is necessary to note that the amendment is being re-introduced in the eighth assembly. Onyejeocoha co-sponsored same bill in the sixth assembly, while former member, Hon. Uche Ekwunife sponsored it in the seventh Assembly. In the last dispensation, the House successfully passed a bill seeking full autonomy: administratively and financially, for the LGAs. According to the requirements for a constitutional amendment, it needed to secure two thirds approval from the 36 State Houses of Assembly. Interestingly this crucial approval was not secured, a development which stakeholders blamed on the influence of the State Governors. 

Debating the bill before the lawmakers, Onyejeocha called for the abolition of the joint state/LGA account, to guarantee the independence and financial autonomy of the LGA Councils. 

The bill seeks to delete sub-sections 5 and 6 and insert new subsections. The current sub- section 5 provides that the amount standing to the credit of the Local Government Councils in the Federation Account, shall also be allocated to States for the benefit of their Local Government Councils on such terms and in such manner as may be prescribed by the National Assembly. Sub- Section 6 provides that “Each State shall maintain a State Joint Local Government Account” into which shall be paid all allocations to the LGA councils from the Federation Account and from the Government of the State.

The new bill seeks to replace the sub-sections to provide that “Each Local Government Council shall maintain a special account to be called Local Government Council Allocation Account, into which shall be paid directly such  allocations to the Local Government Council from the Federation Account, and from the government of the State, provided that there shall be no disbursement of any fund of the Local Government except by a bye-law passed by the Local Government Legislative Council. 

Debate Resurfaces

Onyejeocha, as a former chairperson of Umunneochi LGA of Abia State believes true development cannot reach Nigerians at the grass roots without autonomy for the local governments. 

Speaking further with THISDAY on the merits of the amendment, Onyejeocha, who is also the Chairman of the House Committee on Aviation, lamented that State Governors had come to consider LGAs as their private businesses which they could manage as they deem fit.

“Some Governors have never been into the interiors of these LGAs. When they visit, a reception is organised for them at the school field, and they leave after that. So how would they know what the people really need, outside what their stooges, who they appoint as caretaker Chairman, tell them?” she said.

“The local governments know their developmental and infrastructural needs; health, education, etc, and if they have financial autonomy, they can allocate to these needs. The people should freely choose their leaders, so they know who to entrust their funds with,” she added.

Also speaking with THISDAY in a brief interview, the Minority Leader of the House, Leo Ogor said Nigeria could not be considered to truly be a federated state, until there was full autonomy for the third tier of government, which is the tier closest to the people. 

“FG is providing electricity, providing water, and everything, that is why they are trying to borrow everything. We have mineral resources in the states, bitumen etc. but everything lies in the hands of the FG. The system is not working for us, so we have to go back to the drawing table and allow the States and Local Governments to operate while the Federal government concentrates on security,” he said.

Ogor advocated that several items be taken off the Exclusive list, as the FG is ‘biting more than it can chew’ which is slowing down national development. 

There are amendments to the constitutions that are coming that would take care of things like this, Ogor said.

NULGE’s Position 

The National Union of Local Government Employees (NULGE), Comrade Ibrahim Khaleel in an interview with THISDAY said the LGAs needed more than financial autonomy to encourage development. 

He expressed regret that the bill by the last assembly suffered defeat at the State level, adding that State Houses of Assembly members ought to realise that they were representatives of their people, and not allow themselves be pocketed by their Governors. 

“The importance of local governments cannot be over-emphasised, considering the structure of  our country and its many tribes with different ways of doing things. The only way to accommodate this diversity is by designing a local government that can truly be of the people, not one that is owned and managed and controlled by the Governors. What we have under the 1999 constitution is a caricature system where all manner of experiments are carried out by the Governors. Wherever you go, you see a different system of local government administration,” Ibrahim said.

He however noted that to guarantee the full autonomy of the LGAs, would necessitate expunging the section of the constitution which allows for the creation of State Independence Electoral Commission, organisations used by Governors to frustrate elections in the states. 

The labour leader added that several State Governors, deny the citizens their right to elect their representatives, and only allow elections to hold in the Councils towards the end of their tenures. 

Conclusion

Efforts have to be intensified to ensure the autonomy of the LGAs, as experiences from other parts of the world, such as California, have shown that they are capable of developing their own economies to be one of the largest in the world. Most of Nigeria’s problems can be traced to under-development at the grassroots levels. The legislature should therefore roll up its sleeves and work with relevant stakeholders to make the issue a reality.