Bill To Abolish State/Local Government Joint Account Passes Second Reading


The House of Representatives yesterday passed for second reading, a bill to for an Act to grant  financial autonomy to local government councils in the country.

The bill, sponsored by member representing Isuikwuato/ Umunneochi‎ federal constituency, Nkeiruka Onyejeocha, seeks to abolish State-Local Government Joint Account, by altering section 162 of the 1999 constitution.


According to the bill titled ;”A Bill for an Act to Alter Section 162 of the Constitution of the Federal Republic of Nigeria, 1999 to among Other Things ensure Financial Autonomy of Local Government Councils and for Other Related Matters,”‎ the  State- Local Government Joint Account, through  which all revenues accrued to the local governments are being paid with be abolished.

The bill, when passed into law will establish  Local Government Council Allocation  Account, through which all funds  to local governments from the Federation Account and shall be paid.

‎Disbursement of the fund shall be effected through a bye-law passed by the Local Government Legislative Council.

Onyejeocha explained  that the bill will strengthen the operation of the local government councils , as state governments have capitalised  on the joint account to exploit local government councils and starve them of fund.

“With this joint account in place, many state governments starve local governments of funds, especially funds accruing from the federation account,” she said, noting that unless state-local government joint account is abolished, the objective of strengthening local government as a tier of government will be unattainable,” she said.

According to her, the bill will guarantee employment to local government councils and enable the councils  perform their constitutional duties.
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