By Citizenship Daily
The Senate has taken urgent steps to restructure the Federation Account Allocation Committee (FAAC) to include representatives of local government councils (LGCs) and area councils of the Federal Capital Territory, in line with recent Supreme Court pronouncements.
The resolution followed a motion sponsored by the Deputy Senate President, Senator Barau Jibrin (Kano North), during plenary on Tuesday.
The motion emphasized the need to align the composition of FAAC with the 1999 Constitution and the Supreme Court’s July 2024 ruling affirming the financial autonomy of local governments.
Presenting the motion, Senator Jibrin Isah (Kogi East) noted that Section 7(1) of the Constitution establishes local governments as the third tier of government, entitled to a direct share of allocations from the Federation Account under Section 162(3).
He referenced the Supreme Court’s interpretation of Sections 162(5) and (6), which reaffirmed that states merely act as agents in conveying federal allocations to local governments, without any legal interest or control over the funds.
The apex court further stated that direct payment to LGCs would better serve constitutional intent and address longstanding inefficiencies in the current arrangement.
Isah lamented that despite this judicial clarity, the Allocation of Revenue (Federation Account, etc.) Act of 1981 still limits FAAC membership to representatives of the federal and state governments, excluding local government authorities.
“This provision is inconsistent with the Supreme Court’s latest interpretation. The present legal position demands that local governments, as direct beneficiaries of the Federation Account, be represented in FAAC to protect their constitutional interests,” he said.
Supporting the motion, Senator Adamu Aleiro (Kebbi Central) recalled that the Supreme Court had clarified in past rulings that state governments act merely as conduits in transferring funds to local governments and have no claim over those allocations.
Several senators voiced concerns that, despite this provision, local governments often remain unaware of the actual funds allocated to them.
“This is a very important motion, and we should even go beyond just a motion by formalizing this through legislation,” Isah said.
“It is abnormal for a beneficiary of the Federation Account not to be present during distribution”.
Senator Simon Lalong also backed the motion, describing it as a “proactive action” that would bring much-needed transparency to local governance.
Lalong lamented that during a recent visit to Plateau, several local government officials claimed they had not received full disclosures of their allocations for two years.
“In the past few years, allocations to states and local governments have tripled, but local government chairmen still don’t know what they’re getting. This must stop,” he said.
Senator Diket Plang (Plateau Central) echoed similar sentiments. He stressed that allowing local governments to participate in FAAC meetings would empower them to plan development projects effectively and foster grassroots growth.
“It’s like giving someone money as a favor when they are entitled to it,” he said. “Local governments deserve to be part of the process.”
Following the debate, the Senate observed that state representatives had traditionally spoken on behalf of LGCs at FAAC meetings. However, in light of the evolving constitutional and judicial context, this practice has become inadequate.
Consequently, the Senate resolved to: “Urge the Federal Government to include one representative per state from the Local Government Councils, as well as representatives of the FCT Area Councils, in the composition of FAAC;
“Communicate this resolution to the Minister of Finance and Coordinating Minister of the Economy, who serves as the chairman of FAAC, for immediate implementation;
“Seek the concurrence of the House of Representatives on the matter.”
Deputy Senate President, Barau Jibrin praised the initiative, describing it as timely and essential for national development.
“This motion reflects the Senate’s commitment to transparency, inclusiveness, and grassroots empowerment,” he said.
