The House of Representatives on Wednesday began the move to stop the joint account that exists between states and local government areas.
The lower legislative chamber also took a step to alter Section 162 of the Nigeria’s 1999 Constitution, to ensure financial autonomy of local government councils across the country.
While leading a debate on the Bill, the Member representing Isuikwato/Umunneochi federal constituency of Abia State, Nkiruka Onyejeocha explained that the proposed amendment when passed into law will foster the autonomy, transparency and accountability of local government administration in the country.
“The practices of true federalism is lacking in Nigeria, especially at the local government level. Some state governments deprive their local governments of principal source of their revenues.
“Unless more stable internal source of revenue are exploited, and state-local government joint account abolished, the objective of strengthening local governments in terms of its relationship with state and federal governments will remain a mirage”, Hon. Onyejeocha said.
Speaking further, the Lawmaker revealed that “with this joint account in place, many state governments starve local governments of funds, especially funds accruing from the federation account.”
Aside creating employment opportunities for young people at the local government councils, the Bill also seeks to make the councils in the country to have financial autonomy through which all funds from the Federation Account shall be paid directly.
After the green chamber voted for the Bill to pass for the second reading, the Speaker, Yakubu Dogara referred it to the Special Adhoc Committee on Constitution Review for further legislative action.
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