Nigeria’s Evolving Federalism and the Search for Sustainable Local Government Administration
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Chukwuma Charles Soludo, CFR
Governor, Anambra State
The Anambra State House of Assembly passed two progressive legislations pursuant to its powers under the Constitution (Anambra State Economic Planning and Development Law, 2024; and Anambra State Local Government Administration Law, 2024), and I have signed them into law. This has generated commentaries and debates especially in relation to their consistency or inconsistency with the recent Supreme Court judgement and the mantra of “local government autonomy.” My media team, other members of my government as well as well meaning Nigerians have vigorously defended these progressive laws and that should suffice. At this moment in Nigeria, being a state governor is not a fanciful job, especially given the gamut of allegations and innuendoes levelled against governors vis-a-vis local government funds. In the circumstance, any comment by me would be construed as self defence. However, I have a citizen duty to clarify and contribute to the discourse—especially as one who has been extensively involved in the debate and search for a more perfect union.
At the outset, let me make an important disclosure. I am a federalist and a proponent of competitive federalism for a multi-ethnic, multi-religious, vast country as Nigeria. From my limited knowledge, I do not know any federation (except perhaps some variants in Brazil) where a uniform local government system is provided for in a federal constitution or where the local government is treated as a de-facto federating unit. I understand that the issue of appropriate local government system was vigorously debated by the framers of the 1999 Constitution and a compromise was to insert Sections 7 Constitution which, among others, empowers each State through its House of Assembly to make laws which provide “for the establishment, structure, composition, finance, and functions...” of the local governments. Pioneered by Lagos State about 2004 several states have various laws pursuant to these Constitutional powers. The composition or structure of local governments in Lagos or Ebonyi state is certainly different from Anambra.
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Also, the debate as to whether local governments should be part of the federal constitution or left to each federating unit (state) to determine its own appropriate local government system is still an unsettled matter. The APC committee on restructuring Nigeria proposed scrapping the local government from the Constitution of Nigeria. As the former chairman of planning and strategy committee of Ohanaeze Ndigbo Worldwide, I know that the published position of Ndigbo in 2018 was that local governments be scrapped from the Constitution and let each state/region determine the type of local administration that suits it. Similar positions have been argued by Afenifere, PANDEF, Middle Belt Forum, etc. This is an issue for another day.
In the context of our evolving federalism, I see the recent Supreme Court judgment regarding the direct transfer of funds belonging to the local governments as an important contribution to our search for effective and transparent administration of resources at the local level. I see the judgment as an opportunity for public good. Given the Constitutional mandate for joint planning between the State and local government, I see the judgment as an opportunity for greater transparency and predictability regarding the sources and uses of funds, as well as greater coordination and collaboration between the State and local government. If there was any state where the State-Local Government Joint Accounts Committee did not manage the LG funds transparently, the Supreme court judgment is an opportunity and mandate to do it differently by further empowering the LG administration.
But there is more work to be done. We all need to think through how the funds transferred to the LGs should be appropriated, spent, or accounted for. Monies meant for the federal or state governments are not spent by the president or governors. The National Assembly and State Assemblies make appropriation laws on how and by whom the monies should be spent and provide oversight functions. What happens to the monies directly sent to the LGs? Who spends the monies, on what and how will they be accounted for?
View attachment 1808
Chukwuma Charles Soludo, CFR
Governor, Anambra State
The Anambra State House of Assembly passed two progressive legislations pursuant to its powers under the Constitution (Anambra State Economic Planning and Development Law, 2024; and Anambra State Local Government Administration Law, 2024), and I have signed them into law. This has generated commentaries and debates especially in relation to their consistency or inconsistency with the recent Supreme Court judgement and the mantra of “local government autonomy.” My media team, other members of my government as well as well meaning Nigerians have vigorously defended these progressive laws and that should suffice. At this moment in Nigeria, being a state governor is not a fanciful job, especially given the gamut of allegations and innuendoes levelled against governors vis-a-vis local government funds. In the circumstance, any comment by me would be construed as self defence. However, I have a citizen duty to clarify and contribute to the discourse—especially as one who has been extensively involved in the debate and search for a more perfect union.
At the outset, let me make an important disclosure. I am a federalist and a proponent of competitive federalism for a multi-ethnic, multi-religious, vast country as Nigeria. From my limited knowledge, I do not know any federation (except perhaps some variants in Brazil) where a uniform local government system is provided for in a federal constitution or where the local government is treated as a de-facto federating unit. I understand that the issue of appropriate local government system was vigorously debated by the framers of the 1999 Constitution and a compromise was to insert Sections 7 Constitution which, among others, empowers each State through its House of Assembly to make laws which provide “for the establishment, structure, composition, finance, and functions...” of the local governments. Pioneered by Lagos State about 2004 several states have various laws pursuant to these Constitutional powers. The composition or structure of local governments in Lagos or Ebonyi state is certainly different from Anambra.
View attachment 1809
Also, the debate as to whether local governments should be part of the federal constitution or left to each federating unit (state) to determine its own appropriate local government system is still an unsettled matter. The APC committee on restructuring Nigeria proposed scrapping the local government from the Constitution of Nigeria. As the former chairman of planning and strategy committee of Ohanaeze Ndigbo Worldwide, I know that the published position of Ndigbo in 2018 was that local governments be scrapped from the Constitution and let each state/region determine the type of local administration that suits it. Similar positions have been argued by Afenifere, PANDEF, Middle Belt Forum, etc. This is an issue for another day.
In the context of our evolving federalism, I see the recent Supreme Court judgment regarding the direct transfer of funds belonging to the local governments as an important contribution to our search for effective and transparent administration of resources at the local level. I see the judgment as an opportunity for public good. Given the Constitutional mandate for joint planning between the State and local government, I see the judgment as an opportunity for greater transparency and predictability regarding the sources and uses of funds, as well as greater coordination and collaboration between the State and local government. If there was any state where the State-Local Government Joint Accounts Committee did not manage the LG funds transparently, the Supreme court judgment is an opportunity and mandate to do it differently by further empowering the LG administration.
But there is more work to be done. We all need to think through how the funds transferred to the LGs should be appropriated, spent, or accounted for. Monies meant for the federal or state governments are not spent by the president or governors. The National Assembly and State Assemblies make appropriation laws on how and by whom the monies should be spent and provide oversight functions. What happens to the monies directly sent to the LGs? Who spends the monies, on what and how will they be accounted for?