Despite the Supreme Court’s ruling on local governments’ autonomy, lawmakers in the Cross River State House of Assembly has authorized a 7.5% monthly deduction from the federal allocations of the state’s 18 Local Government Areas (LGAs).
This decision is part of the Local Government Amendment Bill 2025, which successfully passed its third reading during the House’s Friday session.
In addition to the 7.5% deduction, each council will contribute N1 million monthly to the State Reserve Fund.
The bill, sponsored by the Majority Leader, Mr. Davies Ita of the Abi State Constituency, was introduced to the House by the Chairman of the Joint Committee on Local Government, Chieftaincy Affairs, and Rural Development, Mr. Eyo Bassey of Bakassi Constituency.
“The State Local Government Law of 2007 was amended in 2008 and further updated in 2011. It has now been harmonized for better clarity,” Bassey explained during the session.
The amendments also include an upgrade of the Head of Local Government Administration position to the equivalent of a Permanent Secretary and an increase in the number of statutory appointees for LGA chairmen to 50.
Additional deductions from the councils’ allocations include:
1% for the House of Assembly’s oversight functions
0.5% for the State Community and Social Development Agency
1% for the University of Cross River State funding
0.5% for the Office of the Auditor General
4% for the State Road Maintenance Agency
N1 million for the State Reserve Fund
With these amendments, the House aims to strengthen the financial management and infrastructure development of the state.