In what is considered an affront on the Supreme Court Judgment on local government financial autonomy, Cross River State House of Assembly has approved the deduction of 1.5 per cent from the monthly federal allocation to each of the state’s 18 local government areas.
This provision is contained in the Local Government Amendment Bill 2025, which has passed its third reading in the State House of Assembly.
Join our WhatsApp ChannelThe bill, which was sponsored by the House of Assembly Majority Leader, Davies Ita of Abi State Constituency, has been given an expeditious consideration.
On Friday, the lawmakers allowed the bill to pass through second reading, the committee stage, and a third reading.
The law says 7.5 per cent should be deducted monthly from the allocations of each local government.
In addition to that, each local government council must also remit N1 million to the State Reserve Fund.
The amendment bill also provided for other deductions from the LGAs’ gross monthly allocations such as: one per cent for the House oversight function, 0.5 per cent for the state community and social development agency, one per cent for the funding of the University of Cross River State and 0.5 per cent for the Office of the Auditor General.
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Other provisions in the amendment bill include four per cent for the state road maintenance agency and N1 million each for the state reserve fund.
Ruling on LGA Autonomy
Prime Business Africa recalls that the Supreme Court had in July 2024, delivered judgment which affirmed financial autonomy of local governments. The ruling empowered local council administrators to receive monthly allocations directly from the federation account.
The Supreme Court ruling also terminated the existing joint state and the local governments account.
However, the move by Cross River State House Assembly is considered an attempt to undermine the local government autonomy.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
