LGs ordered to take approval before obtaining loans

LGs ordered to take approval before obtaining loans

The Lagos State House of Assembly has directed the 20 Local Governments and 37 Local Council Development Areas (LCDAs) in Lagos State to take prior approval from the House Committee on Local Government Administration and Community Affairs before obtaining bank loans.

This is one of the resolutions reached by the House on Thursday just as it approved the year 2016 Budget Estimates of the councils.

The approval was consequent upon the presentation of the report of the Joint Committee on Y2016 Appropriation of the LGs and LCDAs in the state as presented on the floor of the House on Thursday by the Chairman of the House Committee on Budget and Economic Planning, Hon. Rotimi Olowo.

In the report, which was adopted as a resolution of the House, the sole administrators of the local councils were ordered to pay all outstanding debts incurred by their predecessors.

The amount approved for each of the local governments ranges between one billion and two billion naira.

According to the report, the LGs/LCDAs should explore all revenue sources and block leakages in order to improve on their Internally Generated Revenue (IGRs).

“The Committee on Local Government Administration and Community Affairs should monitor the payment of N8,575,000.00 being owed Mr. Adele Owolabi Elijah by the Apapa Local Government.

“Provisions made for the payment of severance to past political office holders and debts/outstanding liabilities of LGs/LCDAs in the Y2016 Approved Budget should be adhered to.

“The leadership of the LGs/LCDAs are implored to reduce the number of non-pensionable staff in order to save monies for developmental projects.

“The state Commissioner for Finance and the State Accountant-General should ensure quarterly payment of the Land Use Charge and Wharf Landing fees to the LGs/LCDAs in the State,” Olowo said in the report.

In addition, the legislative arm of the Councils were ordered to submit quarterly report of their activities to the House of Assembly in line with Section 35 (1) (8) of the Y2015 Guidelines on Administrative Procedure for Local Governments as amended.

“Local Government Service Commission should be mindful of the period of posting Budget/Planning Officers in the LGs/LCDAs in order not to disrupt Budget Process.”

Hon. Olowo also stated in his report that “The agencies in the State that deals with all accrued fund to the LGs/LCDAs must be accountable for the operation of the law that set them up.”


It will be recalled that the House at the Plenary Session of Tuesday, 16th February, 2016 mandated the Joint Committee on Economic Planning and Budget; Local Government Administration and Community Affairs; and Public Accounts (Local) to consider Y2016 Appropriation for 20 LGs and 37 LCDAs in the State.

The House subsequently adjourned sitting to Monday 11 July, 2016 after Sallah holidays to enable members who are Muslims and willing go on Umrah to Saudi Arabia.

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