In a significant legislative move, the Cross River State House of Assembly has approved the Local Government Amendment Bill 2025, which mandates the state’s 18 local government councils to make specific monthly deductions from their gross allocations to fund various state agencies and functions.
The bill introduces the following mandatory deductions:
- 1% of gross allocation for House of Assembly oversight functions.
- 0.5% of gross allocation for the State Community and Social Development Agency.
- 1% of gross allocation for the University of Cross River State (UNICROSS).
- 0.5% of gross allocation for the State Auditor General’s office.
Additionally, the bill elevates the Heads of Local Government Administration (HOLGAs) to the rank of Permanent Secretaries, aligning them with their counterparts in the State Civil Service. This adjustment is framed as a reward for their “dedication and hard work.”
The bill has sparked debate as it appears to contradict a landmark Supreme Court ruling granting local governments full financial and administrative autonomy. Critics argue that these deductions undermine the fiscal independence of the local councils, potentially setting a dangerous precedent for local government operations in the state.
The bill was passed following deliberations on the findings and recommendations of a Joint Committee comprising the Committees on Local Government, Chieftaincy Affairs and Rural Development; Judiciary; Public Service Matters; Public Petitions and Conflict Resolution; and Public Accounts.
While the Assembly asserts that the bill will enhance state oversight and accountability, its implications for local government autonomy remain contentious. Stakeholders, including local council leaders and civil society groups, are expected to challenge the decision, citing the potential erosion of local government independence.
The passage of this bill raises critical questions about the balance between state oversight and local autonomy, setting the stage for potential legal and political confrontations in the days ahead.
