The Senate has urged the Nigerian Government to ensure the inclusion of one representative from each local government council across the states, as well as one from each area council in the Federal Capital Territory, in deliberations of the Federal Account Allocation Committee (FAAC).
It further instructed that this resolution be communicated to the Minister of Finance and Coordinating Minister of the Economy, who also serves as Chairman of the FAAC, for immediate implementation.
This move, aimed at reinforcing constitutional adherence and financial transparency at the grassroots level, stemmed from a motion by Senator Barau Jibrin (Kano North). He underscored that local government councils, as constitutionally recognised third-tier governments under Section 7(1) of the 1999 Constitution (as amended), are entitled to a direct allocation from the Federation Account.
The Senate referenced a Supreme Court judgement, which clarified that state governments merely act as channels for transferring local government allocations and possess no ownership or discretionary control over such funds.
The lawmakers pointed out that, while FAAC currently comprises only representatives of the federal and state governments, Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 excludes local government representation. This exclusion has now been deemed incompatible with the Constitution, following a landmark Supreme Court ruling delivered in July 2024.
The Senate further observed that, although state governments have historically represented local councils at FAAC, the recent legal interpretation necessitates direct representation to protect local government interests and improve transparency in revenue distribution.