De Renaissance Patriots says local governments can’t be fully autonomous without their sources of revenues returned to them

CITIZENS COMPASS – De Renaissance Patriots Foundation, a socio-cultural organisation for the Lagos State indigenes, has raised a 22-point observation to a proposed Bill being currently discussed in the Lagos State House of Assembly towards amending the Lagos State Law on Local Government Administration.

In a letter dated October 22, 2024, which it wrote on the matter and addressed to the Speaker of Lagos State House of Assembly, Rt. Hon. Mudashiru Ajaiyi Obasa, the Group believes that since the Constitution of the Federal Republic of Nigeria is supreme and Supreme Court’s decision on any issue of law especially with regard to the roles of local governments is sacrosanct, there can be no way for Local Governments to function properly or operate successfully and be fully autonomous without their constitutionally specified roles and sources of revenues – taken through time-to-time state legislative acts since 1999 to the Lagos State Government – returned to them.

The Foundation, which raised the point of order during an emergency meeting of its steering committee in Lagos on Friday October 18, 2024, wanted the state government and the House of Assembly to go back to what the Constitution says with respect to the responsibilities and sources of generating revenues by Local Governments with holistic address of all the infractions perpetrated and how those constitutional roles and rights of the Local Governments have been infringed upon by the state government, since 1999.

At the meeting well attended by leaders of De Renaisssance Patriots Foundation, with members including Retired Generals, Retired Justice, Professors, Retired Police Commissioner and other eminent Nigerians who retired from state services as top professionals and bankers, the Group noted some key points from the Amendment of the Lagos State Law on Local Government Administration Bill, which include the aspect that reverses the state’s 57 LGAs/LCDAs to 20-Local Government Structure but still seeks new 37 Area Administrative Councils to replace the currently operated Local Council Development Areas (LCDAs),

However, De Renaissance Patriots could not come to term with the aspect of the amendment that, though gives impression of reversing to 20-Local Government Structure, replaces the 37 unconstitutional LCDAs creation it seeks to repeal with yet another 37 unconstitutional Area Administrative Councils, each of which will be headed by an Administrative Secretary who will be appointed by the Governor, subject to confirmation by the Lagos State House of Assembly.

In the letter to the Assembly Speaker titled, “De Renaissance Patriots Establishing Rebuttable Presumptions in the Local Government Autonomy In Lagos State”, the Group noted that it reviewed the “Bill for a Law to provide for local governments’ system, establishment and administration and to consolidate all laws on local government administration and for connected purposes” in compliance with the requisite Constitutional provisions and the recent Supreme Court judgement in AG FEDERATION VS AG ABIA STATE AND OTHERS (2024)LPELR-62576 (SC) on local government autonomy and related issues. It then gave what it described as its brief analysis of the Bill.

Signed by its Board of Trustees (BOT) Chairman, Professor Iliyas Adele Jinadu, a professor of political science, supported by Alternate BOT Chairman, Major General Tajudeen Olanrewaju, a former Minister of Communications, President, Mr. Miftah Bolaji Are, among other trustees, the letter – conveying De Renaissance Patriots’ 22 observations on the proposed Bill – expressed the Group’s concerns in ways that show its disagreement with some aspects of the amendment.

Addressing the Assembly Speaker, the letter, which cited Parts, Sections and Schedules of the Constitution in supporting the 22-point observation it raised, stated that, “In conclusion, De Renaissance Patriots Foundation feels strongly that the Local Governments in Lagos State will not be fully Autonomous until the State Assembly legislates and passes a law that will allow Local Governments collect revenue from the third tier’s statutory sources which includes Tenement Rates, Advertisements Charges, Market Rates, Motor Park tolls etc that have been taken over by the State government.”

According to the socio-cultural organisation, “We have carefully read and given serious thoughts to ALL Parts and Sections of the Bill, with a view to examine the legislative accuracy as to the purpose and efficient service delivery in local governments system in the State. Our observations, thoughts and criticisms are hereunder presented for your kind consideration. In all, we have made twenty two (22) observations listed here.”

Extracts from the observations by De Renaissance Patriots include, “Observation 2, 3 and 4: These observations are in respect of Sections 4 to 7 of the Bill on the provisions for 37 LCDAs and related matters. The legal status of LCDAs in the State has been settled in earlier case of AG LAGOS STATE VS AG FEDERATION (…) and creates but are “inchoate”, the further action of the Federal Government to release the withheld allocations of the 20 Local governments to them, then it is safe to state that the LCDAs must draw from the revenues of their parent LGAs to function.

“The legislative competence of the House to make laws in respect of the governance in local governments in the State is not in doubt; but it is the subject matters of such laws that are affected by the Supreme Court judgement in AG FEDERATION VS AG ABIA STATE AND OTHERS (Supra).Therefore, the sharing of revenue from the FEDERATION Account among the LGAs and LCDAs ought now to be statutorily provided for and not performed by the Joint Account Committee (JAC).

“It is observed that under SECTION 4 (7) to (9) of the Bill, the State Government still arrogates the powers to make deductions from the allocations received from the Federal Government and designated some expenditures as (first) charges to be deducted at source to cater for items contained in Subsection 7(a) and (b).

“It is humbly submitted that such provisions are clearly against the Supreme Court’s pronouncement in AG FEDERATION VS AG ABIA STATE AND OTHERS (Supra).”

Essentially it also listed, “Observation No 19: This observation is in respect of Section 42 of the Bill and it relates to the functions of the Local governments in the State. Having regard to the applicability of the Fourth Schedule to the Constitution of the Federal Republic of Nigeria 1999 in respect of the Constitutional functions of the Local Governments, it is our humble opinion that the entire provisions of Sections 42, 43 and 44 be subjected to the requisite Sections and Schedules of the Constitution.

“Observation No 20: This observation is in respect of Section 46(2) of the Bill and it relates to the exercise of legislative powers and functions by a local government Council. Under Section 46(2) thereof, the requisite majority to pass a Bye Law before the same is forwarded to the Chairman for his assent was not specified. It is our considered view that such a majority ought to be specified as two third majority of the members of the Council.