The Cross River State House of Assembly has okayed the deduction of 7.5 per cent from the monthly federal allocation of each of the 18 Local Government Areas of the state.
The deduction is contained in the Local Government Amendment Bill 2025, which has gone through the third reading in the House.
The bill on Friday passed through the second reading, the committee stage and was subsequently passed for 3rd reading.
In addition to the 7.5 per cent monthly deduction, each council was also to commit N1 million into the purse of the State Reserve Fund.
The bill was sponsored by the Majority Leader of the Assembly, Mr Davies Ita, of Abi State Constituency.
During sitting, the Chairman, Joint Committee on Local Government, Chieftaincy Affairs and Rural Development, Mr Eyo Bassey of Bakassi Constituency, laid the bill on the floor of the House and it was formally accepted as a working document.
Bassey said that the State Local Government Law 2007 was first amended in 2008 and further aamended in 2011, adding that “it has been harmonised for clarity now”.
After the committee stage, the lawmakers agreed to the following amendments.
They include an Upgrade of the position of Head of Local Government Administration to the equivalent of Permanent Secretary and increase in the number of the chairman’s statutory appointees to 50.
The amendment also prescribes other deductions from the gross monthly allocation of each council.
They include monthly deduction of one per cent for the House oversight function, and 0.5 per cent for the state community and social development agency.
The bill also includes one per cent for the funding of the University of Cross River State, and 0.5 per cent for the Office of the Auditor General.
The rest are four per cent for the state road maintenance agency and N1 million each for the state reserve fund.
