Abia State Govt. Defies Supreme Court propose Bill to Centralize Local Government Funds

Abia State Governor Dr. Alex Otti has introduced an executive bill to the state House of Assembly proposing a state-led committee to oversee local government funds—a move that directly challenges recent Supreme Court rulings affirming financial autonomy for local governments.

The Proposed Bill: Structure and Objectives

The Abia State Local Government Administration Bill, 2025, sponsored by Majority Leader Hon. Okoro Uchenna Kalu (Arochukwu), passed its second reading in the assembly and seeks to establish a Consolidated Account Management Committee to supervise local government finances. Key features of the bill include:

• Committee Composition:
• Chaired by the Accountant General of the Local Government.
• Includes three Local Government Mayors (one from each senatorial district), the Chairman of the Local Government Service Commission, the Commissioner for Local Government, the Chairman of the Abia State Universal Basic Education Board, and the Executive Secretary of the Local Government Staff Pensions Board.
• Joint Signatory Powers:
• The Accountant General and two Mayors would be joint signatories to the Local Government Consolidated Account.
• Withdrawals would require signatures from the Accountant General and at least one Mayor.

Conflict with Supreme Court Precedent

The bill’s provisions clash with a landmark July 11, 2024, Supreme Court ruling that affirmed local governments’ exclusive right to manage their funds without state interference. The court emphasized that state governments must not exercise control over local government allocations, stating that such autonomy is enshrined in the Constitution.

Legal and Political Implications

Critics argue that the proposed committee undermines the Supreme Court’s directive, which explicitly prohibits state oversight of local government finances. The bill’s emphasis on centralized control through state-appointed members and signatories risks legal challenges, as it contradicts the court’s affirmation of financial independence for local governments.

The Abia State House of Assembly now faces a critical decision: whether to proceed with the bill despite its potential unconstitutionality or align with the Supreme Court’s ruling to avoid further legal battles.

Public and Stakeholder Reactions

Local government officials and legal experts have raised concerns, with some calling the bill a “direct affront to judicial authority.” A spokesperson for the Abia State Local Government Association stated:

“The Supreme Court’s ruling is clear: local governments must manage their funds autonomously. This bill disregards that principle and could jeopardize the financial stability of local councils.”

Alex Otti

Next Steps

The bill will require final passage by the House of Assembly and assent from Governor Otti to become law. However, stakeholders anticipate legal challenges if the bill proceeds, potentially leading to another court battle over the scope of local government autonomy.

This development highlights the ongoing tension between state governments and local authorities in Nigeria, with courts increasingly asserting the need for decentralized governance.