The Senate has urged the Federal Government to include one representative from each local government council in every state, as well as one from each area council in the Federal Capital Territory, in the discussions of the Federal Account Allocation Committee (FAAC).
The Senate also resolved that this decision should be communicated immediately to the Minister of Finance and Coordinating Minister of the Economy, who chairs FAAC, for implementation.
These resolutions, aimed at improving adherence to the constitution and promoting financial transparency at the local level, followed a motion put forward by Senator Barau Jibrin (Kano North).
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He emphasized that local government councils (LGCs) are constitutionally recognized as the third tier of government under Section 7(1) of the 1999 Constitution (as amended) and are therefore entitled to a direct share of funds from the Federation Account.
The Senate cited a Supreme Court ruling that clarified that state governments are simply channels for transferring local government allocations and do not have ownership or discretionary control over these funds.
The lawmakers further pointed out that while FAAC currently only includes representatives from the federal and state governments, Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 excludes local governments.
This exclusion is now considered inconsistent with the Constitution, based on a significant Supreme Court judgment delivered in July 2024.
The Senate also noted that although state governments have historically represented local governments at FAAC, the changing legal interpretation now requires direct representation to protect the interests of local governments and increase transparency in how revenue is shared.
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