The Nigerian Senate has called on the Federal Government to include one representative from each local government council across the states and one from each area council in the Federal Capital Territory in Federal Account Allocation Committee (FAAC) deliberations. The resolution, aimed at ensuring constitutional compliance and enhancing financial transparency at the grassroots level, was passed during a plenary session on Tuesday.
The Senate also directed that the resolution be communicated to the Minister of Finance and Coordinating Minister of the Economy, who chairs FAAC, for immediate implementation.
The decision followed a motion sponsored by Senator Barau Jibrin (Kano North), who emphasized that local government councils (LGCs), recognized as the third tier of government under Section 7(1) of the 1999 Constitution (as amended), are entitled to a direct share from the Federation Account. Jibrin cited a landmark Supreme Court ruling in July 2024, which clarified that state governments serve only as conduits for transferring local government allocations and lack ownership or discretionary control over these funds.
The lawmakers noted that the current FAAC structure, which includes only federal and state government representatives, excludes local governments, as stipulated in Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981. The Senate deemed this provision inconsistent with the Constitution in light of the recent Supreme Court judgment. Historically, state governments represented local governments at FAAC, but the Senate argued that evolving legal interpretations now necessitate direct local government representation to protect their interests and promote transparency in revenue allocation.
The resolution underscores the Senate’s commitment to strengthening the autonomy and financial independence of local governments in Nigeria.
