The Senate has called on the Federal Government to ensure that each local government council across the states, as well as each area council in the Federal Capital Territory, is represented in the deliberations of the Federation Account Allocation Committee (FAAC).
The Senate directed that this resolution be communicated to the Minister of Finance and Coordinating Minister of the Economy—who also chairs the FAAC—for immediate implementation.
The resolution followed a motion sponsored by Senator Barau Jibrin (Kano North), who emphasized that local government councils (LGCs), as constitutionally recognized third-tier governments under Section 7(1) of the 1999 Constitution (as amended), are entitled to a direct share of revenue from the Federation Account.
In support of the motion, the Senate cited a recent Supreme Court judgment which reaffirmed that state governments merely act as conduits in the disbursement of local government funds and do not possess ownership or discretionary control over such allocations.
Lawmakers noted that FAAC currently comprises representatives from the federal and state governments only, while Section 5 of the Allocation of Revenue (Federation Account, etc.) Act of 1981 excludes local governments from participation. However, this statutory exclusion is now deemed inconsistent with constitutional provisions, particularly in light of the Supreme Court’s July 2024 judgment.
The Senate stressed that, although states have historically represented local governments at FAAC, evolving legal interpretations now necessitate direct local government participation. This, it argued, is essential for promoting transparency, accountability, and constitutional compliance in the distribution of public funds.
