LG Payroll Dispute: Otu Dragged to Court
By Ekanem Asuquo
Governor Bassey Otu is now at the centre of a legal dispute at the Federal High Court in Abuja following his attempt to transfer the payroll of the 18 local government councils in Cross River State to the office of the state Accountant General.
The action was initiated by Abuja based legal practitioner, Max Ogar, through a public interest suit challenging the legality of the directive. The Cross River State Attorney General, the state Ministry of Justice, and the Attorney General of the Federation have been joined as defendants.
The plaintiff is urging the court to determine whether the directive infringes on the constitutionally guaranteed autonomy of local governments, particularly in light of the Supreme Court ruling in Attorney General of the Federation v. Attorney General of Abia State & 35 Ors. delivered on July 11, 2024.
He is also asking the court to decide whether the policy is consistent with Sections 7 and 162 of the 1999 Constitution as amended, as well as Section 6 of the Cross River State Local Government Amendment Law, 2025.
According to court filings, the plaintiff is seeking declarations that the directive is unlawful and inconsistent with both constitutional and state legal provisions. He further contends that the move contradicts the Supreme Court judgment affirming the financial independence of local governments.
In addition, the suit is seeking an order restraining the Cross River State Government from taking further steps that could undermine the autonomy of the 18 local government councils, especially in matters relating to their finances.
The directive has also attracted opposition from the National Union of Local Government Employees in Cross River State. In a letter dated March 12, 2026, addressed to Governor Otu, the union described the move as an attempt to subsume local government payrolls under the state system, warning that it violates constitutional provisions.
