The Senate has called for the inclusion of one representative from each local government council in all states and one per area council in the Federal Capital Territory (FCT) in Federal Account Allocation Committee (FAAC) deliberations. This move aims to enhance constitutional compliance and financial transparency at the grassroots level.
The Senate’s decision follows a motion sponsored by Senator Barau Jibrin (Kano North), who pointed out that local government councils (LGCs) are constitutionally recognized as third-tier governments under Section 7(1) of the 1999 Constitution (as amended). As such, they are entitled to a direct share from the Federation Account.
The Senate referenced a Supreme Court ruling which clarified that state governments merely act as conduits for transferring local government allocations, holding no discretionary power over those funds. This ruling, along with Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981, which currently excludes local governments from FAAC, was deemed inconsistent with the Constitution following a landmark judgment in July 2024.
While historically, state governments represented local governments at FAAC, the Senate noted that recent legal interpretations necessitate direct representation for local governments. This change would ensure transparency and safeguard local government interests in the revenue-sharing process.
The resolution also mandates that the Minister of Finance and Coordinating Minister of the Economy, who chairs FAAC, be informed for immediate action on this matter.
