The Cross River House of Assembly has approved the deduction of 7.5% from the monthly federal allocations of all 18 local government areas in the state. The decision is part of the Local Government Amendment Bill 2025, which was passed after going through the third reading during the House’s sitting on Friday.
In addition to the 7.5% deduction, each local government council will contribute ₦1 million monthly to the state reserve fund.
The bill, sponsored by the Majority Leader, Davies Ita of Abi State Constituency, seeks to amend the State Local Government Law, which was first enacted in 2007 and later amended in 2008 and 2011. During the session, the chairman of the joint committee on local government, chieftaincy affairs, and rural development, Eyo Bassey of Bakassi Constituency, presented the bill, describing it as “harmonized for clarity.”
Additional Amendments Approved
The lawmakers also approved several other amendments to the Local Government Law. Among these changes is the upgrade of the position of Head of Local Government Administration to a rank equivalent to a permanent secretary. Additionally, the number of statutory appointees that a local government chairman can appoint was increased to 50.
The bill also outlines other deductions from the gross monthly allocation of each council, including:
- 1% for the House oversight function.
- 0.5% for the State Community and Social Development Agency.
- 1% for the funding of the University of Cross River State.
- 0.5% for the Office of the Auditor General.
- 4% for the State Road Maintenance Agency.
These deductions aim to support various state-level projects and institutions.
Explaining the rationale for the deductions and other amendments, Mr. Bassey stated, “The Local Government Law needed updates to reflect current realities and ensure adequate funding for critical state initiatives. These contributions will help develop essential infrastructure, education, and other sectors.”
The Assembly emphasized the importance of the state reserve fund and described it as a safety measure for economic stability.
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The new law has sparked mixed reactions among stakeholders and residents. While some see the amendments as a necessary step to fund state projects, others argue that it could limit the financial autonomy of local governments.
“This decision will strengthen key institutions like the University of Cross River State and improve road maintenance across the state,” said one lawmaker.
However, a council official who requested anonymity expressed concerns about the impact of the deductions. “With these new deductions, local governments will have less money to address grassroots development needs. It’s a tough situation,” the official said.