Senate Moves to Include Local Government Representatives in FAAC
By Idun Maximus
Determined to reinforce Nigeria’s federal structure, the Senate on Tuesday deliberated on a motion seeking the urgent inclusion of Local Government and Area Council representatives in the Federation Account Allocation Committee (FAAC).
Sponsored by Senator Jibrin Barau (Kano North), the motion harped on the constitutional rights of Local Government Councils (LGCs) as the third tier of government to receive direct allocations from the Federation Account, citing Sections 7(1) and 162(3) of the 1999 Constitution (as amended).
Leading the debate, Senator Barau referenced the July 2024 Supreme Court judgment which clarified that states merely act as conduits for transmitting federal allocations to local governments and hold no proprietary rights over those funds.
The apex court, he said, criticized the inefficiencies of the current arrangement, where state governments serve as intermediaries in the disbursement process.
The court emphasized the need for direct allocation to LGCs in order to promote financial autonomy and improve service delivery at the grassroots level.
Barau pointed out that FAAC, as currently constituted under Section 5 of the Allocation of Revenue (Federation Account, etc.) Act of 1981, comprises only representatives of the federal and state governments.
This structure excludes local governments, despite their constitutional recognition as a vital tier of governance.
“Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 prescribes the membership of FAAC to include only representatives of the Federal and State Governments, excluding the third tier of Government, i.e., Local Government Councils.
“This provision of the Act is no longer consistent with the current interpretation of Sections 162(5) and (6) of the 1999 Constitution, as recently determined by the Supreme Court ”,he stated.
Underscoring the urgency of the matter, Barau stressed that the law must be harmonized with the Constitution and the Supreme Court’s interpretation to ensure consistency and legal alignment.
He argued that the direct inclusion of LGCs in FAAC would reflect constitutional intent and promote the smooth functioning of Nigeria’s revenue distribution framework.
Barau further stated that the Supreme Court recognized the importance of direct allocations in fulfilling the spirit of the Constitution and ensuring that local governments receive their share of national resources without obstruction.
In its resolution, the Senate presided over by Senate President, Godswill Akpabio backed the motion via their contributions and called on the Federal Government to ensure the inclusion of one representative from each state’s local governments and from the Federal Capital Territory’s Area Councils in FAAC.
This, the Senate explained, would safeguard the interests of the third tier of government.
AbeyaNews reports that the resolution is to be formally communicated to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also serves as Chairman of FAAC, for immediate implementation.
Additionally, the Senate urged the House of Representatives to concur with the motion to enable prompt legislative action.
