Paul Nwosu :
Governor Chukwuma Charles Soludo’s recent speech on the evolving nature of Nigeria’s federalism and the search for sustainable local government administration offers deep insights into his administration’s strategic approach to governance. His focus on the *Anambra State Economic Planning and Development Law, 2024* and the *Anambra State Local Government Administration Law, 2024* reflects a forward-thinking approach to achieving balanced autonomy within a collaborative federal system. These laws come at a critical juncture in Nigeria’s political landscape, as the Supreme Court’s ruling on direct transfers of local government funds has reignited debates around local government autonomy.
Governor Soludo’s speech underscores the ongoing debate surrounding the role of local governments in Nigeria’s federal structure. Federalism, by its nature, distributes power between different tiers of government—national, state, and local—to ensure efficiency and accommodate diversity within a country as large and complex as Nigeria. However, in Nigeria, the question of local government autonomy has been contentious. Historically, local governments have been perceived as extensions of state governments, with significant control exerted over their finances and administration by state authorities.
Soludo is a strong proponent of *competitive federalism*, a system where each state can create and adapt its own governance structures in line with its unique economic, social, and cultural realities. In this context, the local government should not be treated as a federating unit in the same way states are, but rather as an administrative arm designed to serve the grassroots more efficiently under the guidance and supervision of state governments.
He points out that in almost no federal system around the world, apart from some variants in Brazil, is the local government a de facto independent federating unit. This comparative analysis is crucial in understanding why he believes local governments in Nigeria should operate within the framework set by each state’s legislative arm. Soludo highlights that the 1999 Constitution, particularly Section 7, grants state legislatures the power to define the structure, functions, and financing of local governments. This provision, he argues, is vital in ensuring that local governments are not only functional but also transparent and accountable.
The Supreme Court’s judgment, which mandates direct transfers of funds to local governments, was widely interpreted as a step toward greater local government autonomy. However, Governor Soludo sees it differently. Rather than a call for absolute independence, he views the ruling as an opportunity to enhance transparency and create a more coordinated relationship between state and local governments. According to him, the judgment serves as a mandate for the state to introduce structured reforms that will ensure local governments manage their funds effectively and accountably.
Soludo’s new laws are therefore designed to operationalize the Supreme Court’s decision while maintaining the necessary oversight and collaboration between the state and local government tiers. These laws ensure that the funds received by local governments are not subject to arbitrary or uncoordinated spending but are aligned with broader state development goals, including education, healthcare, and worker welfare. This structured approach, Soludo argues, prevents potential mismanagement and guarantees that local governments do not fall into financial disarray.
Governor Soludo’s central argument revolves around the idea that absolute autonomy for local governments is not only impractical but potentially damaging. He gives the example of primary education and healthcare, sectors that are constitutionally under the purview of local governments but are heavily supported by the state. Soludo contends that if each local government were fully autonomous, disparities would emerge, with some local governments potentially unable to pay teachers or provide adequate healthcare, leading to a breakdown in service delivery.
To mitigate this, the new laws mandate a pooling of resources. This joint fund, controlled by local government councils themselves, ensures that essential services like education and healthcare are uniformly funded and maintained across the state. By pooling funds, local governments can also ensure that workers’ salaries, pensions, and gratuities are paid on time, avoiding the chaos of unequal financial management that could arise from absolute autonomy.
Governor Soludo emphasizes that structured collaboration between state and local governments is not only necessary but also mandated by the Constitution. He points to Section 7(3) of the 1999 Constitution, which requires local governments to participate in the economic planning and development of their areas through the creation of an economic planning board. This board, composed of local government chairpersons, plays a crucial role in determining how resources are allocated and how joint services, such as primary education and healthcare, are managed.
This collaborative model, Soludo argues, ensures that no local government is left behind in providing critical services to its citizens. The pooling of funds and the collaborative decision-making process allow local governments to benefit from economies of scale while ensuring that each government retains control over its finances and priorities.
Governor Soludo’s emphasis on sustainability and institutional reform reflects his broader vision for governance in Anambra State. He highlights the reforms his administration has already made in clearing arrears of gratuities and pensions, investing in primary education through counterpart funding for UBEC, and modernizing healthcare centers across the state. These reforms, he asserts, would not have been possible without a structured financial system that ensures resources are pooled and distributed according to the needs of the state.
By enacting these new laws, Soludo aims to protect the gains made so far and ensure that future administrations cannot easily undo the progress. The laws create a framework for the sustainable management of local government finances, ensuring that basic services like education and healthcare are funded as a matter of priority. This approach, Soludo believes, will prevent the return of chaotic situations where local governments are unable to pay teachers or pensions, as was the case in the 1990s and early 2000s.
One of the key elements of Soludo’s reforms is the emphasis on accountability and transparency. He notes that Anambra State is currently ranked first among the 36 states in Nigeria in terms of fiscal transparency by BudgIT, a civil society organization that tracks government spending. This achievement is a testament to his administration’s commitment to building enduring institutions that operate within the framework of due process and the rule of law.
The new laws are designed to ensure that local governments adhere to the same principles of transparency and accountability. By empowering local government councils to decide on the allocation of their funds and by introducing multiple layers of oversight, Soludo’s reforms seek to prevent the mismanagement of resources and ensure that funds are used for the benefit of the people.
Governor Soludo’s reforms in Anambra State provide a blueprint for other states grappling with the challenges of local government autonomy in Nigeria’s evolving federalism. His approach balances the need for local governments to have control over their resources with the practical reality that no government, local or otherwise, can function in isolation. By fostering collaboration, enhancing transparency, and building sustainable institutions, Soludo’s administration is setting a standard for how local governments can be empowered while maintaining the oversight necessary to ensure efficient and equitable service delivery.
In essence, Governor Soludo’s laws are not just about reforming local government administration in Anambra State; they are about laying the foundation for a more resilient and functional federal system in Nigeria. As he aptly notes, Nigeria’s federalism is a work in progress, and these reforms represent a significant step toward achieving a more perfect union.
*SIR PAUL NWOSU PhD*
Editor-in-Chief
Anambra Times
