“No Loans Without State Approval” — Lagos Assembly Passes Local Govt Regulations to Curb Conflicts and Strengthen Accountability

The Lagos State House of Assembly has approved the comprehensive Regulations and Guidelines on Administrative Procedures for Local Governments and Local Council Development Areas in the State, 2025.

This significant legislative action, spearheaded by the Chairman of the Committee on Local Government Administration, Chieftaincy Affairs, and Rural Development, Ganiu Sanni (Kosofe 1), was passed following a spirited second day of debate. The regulations aim to instil greater accountability, transparency, and operational clarity at the grassroots level.

The Speaker, Dr. Mudasiru Obasa, gave the final approval after lawmakers raised critical points that influenced the regulations’ final form.

A key point of discussion was internal conflicts within Local Governments (LGs). While the initial draft suggested that all disputes between the Chairman and members of the Executive Committee be referred to the House, Kehinde Joseph successfully argued that such disputes should be primarily resolved within the council itself.

Under the new regulations, LGs may only raise loans for capital development expenditure or specific projects with the explicit approval of the State House of Assembly and the State Accountant-General. To ensure public transparency, approved LG budgets must be posted on the notice board for the entire financial year.

Abiodun Orekoya emphasized the need for tighter fiscal control, resulting in a mandate that no LG can apply for a loan without State Government approval.

Kehinde Joseph highlighted that the specific role of the Chief of Staff was not explicitly stated in the draft, even though the position is part of the LG Executive Arm, prompting a likely future clarification.

Solomon Bonu pressed for a stronger focus on LGs’ ability to address community insecurity, urging the chairman to ensure the regulations promote truthfulness and act as a check on LGs already violating the stipulated rules.

Aro Moshood also commended the committee for its thorough work.