The Nigerian Senate has called for the inclusion from each state and the Federal Capital Territory a representative of a local government council in the membership of the Federation Account Allocation Committee (FAAC) to safeguard their interests in revenue allocation.
The resolution follows the consideration of a motion titled “Urgent Need to Alter the Composition of the Federation Account Allocation Committee (FAAC) by Including Representatives of Local Governments and Area Councils”, sponsored by Senator Barau Jibrin (APC, Kano North) and presented on his behalf by Senator Isah Jibrin (APC, Kogi East) during Tuesday’s plenary.
Presenting the motion, Senator Isah Jibrin noted that Section 5 of the Allocation of Revenue (Federation Account.) Act of 1981 currently provides for the inclusion of only federal and state government representatives on the committee, excluding the third tier of government.
He explained that this arrangement has become inconsistent with the current interpretation of Sections 162(5) and (6) of the 1999 Constitution (as amended), particularly in light of the Supreme Court’s July 2024 ruling, which recognized the right of local governments to receive direct allocations from the Federation Account.
He said while states have historically represented local governments at FAAC, the Supreme Court has made it clear that this structure is outdated and unjust.
He further emphasized that the Supreme Court ruled that the practice of routing local government funds through state governments has failed, and that going forward, allocations should be made directly to the local governments
According to him the court also held that states have no proprietary claim over the funds meant for local governments as their role is merely to transfer such allocations.
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Following deliberations, the Senate unanimously adopted the motion and resolved to urge the Federal Government to ensure the inclusion of one Local Government representative per state and the FCT on the Federation Accounts Allocations Committee
The senate also resolved to communicate the resolution to the Minister of Finance and Coordinating Minister of the Economy, who serves as Chairman of FAAC, for urgent implementation.
(Editor: Oloyede Oworu)
