Senate seeks inclusion of local government councils in FAAC.

The Senate has urged the Federal Government to include one person from each local government council in each state, as well as one from each area council in the Federal Capital Territory, in Federal Account Allocation Committee meetings.

It also instructed that the resolution be forwarded to the Minister of Finance and Coordinating Minister of the Economy, who serves as the FAAC Chairman, for quick action.

The resolutions, which aim to strengthen constitutional compliance and financial transparency at the grassroots level, came after a motion sponsored by Senator Barau Jibrin (Kano North), who emphasised that LGCs, as constitutionally recognised third-tier governments under Section 7(1) of the 1999 Constitution (as amended), are entitled to a direct share of the Federation Account.

The Senate highlighted the Supreme Court’s decision, which established that state governments serve only as conduits for transmitting LG allocations and have neither ownership nor discretionary authority over such monies.

The lawmakers said that even though the FAAC currently has representatives from the federal and state governments, Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 leaves out local governments, and this is now considered against the Constitution after a major Supreme Court ruling in July 2024.

The Senate further stated that, while state governments have traditionally represented local governments at the FAAC, the developing legal interpretation now requires direct representation to protect local government interests and increase openness in revenue sharing.