The Senate has called on the Federal Government to ensure the inclusion of one representative from the Local Government Councils of each state and the FCT Area Councils in the Federation Account Allocation Committee (FAAC), to safeguard their interests.
This resolution followed a motion sponsored by the Deputy Senate President, Senator Barau Jibrin, on the urgent need to amend the composition of FAAC to include representatives from the third tier of government.
Presenting the motion during Tuesday’s plenary, Senator Barau represented by Senator Isa Jibrin of Kogi State, emphasized that Local Government Councils, as established under Section 7(1) of the 1999 Constitution (as amended), are a recognized tier of government and are, by virtue of Section 162(3), entitled to direct allocation from the Federation Account.
Senator Barau stressed that their current exclusion from FAAC undermines constitutional provisions and called for urgent correction to ensure fairness and equity in national revenue distribution.
He also notes that the Supreme Court has construed Sections 162(5) and (6) CFRN 1999, to the effect that the States are agents of the Federation to collect Local Government allocations from the Federation Account and pay to LGCs and did not give the States any right or interest in the said allocations to the LGCs, from the Federation Account.
Barau further believes that the Supreme Court went further to state that the duty of the States is to simply convey to the LGCs their allocations from the Federation Account and further recognised that the approach of a direct payment to the LGCs will achieve the intention and purpose of the Constitution and accord with the smooth running of the system of paying the LGCs their allocations from the Federation Account;
Also aware that the Supreme Court has also pronounced to the effect that paying the LGCs through the States of the Federation has not worked, therefore justice demands that LGCs’ allocations from the Federation Account should henceforth be paid directly to the LGCs;
The motion further observes that section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 prescribes the membership of the Federation Account Allocation Committee (FAAC) to be only representatives of the Federal Government and State Governments to the exclusion of the 3rd tier of Government, i.e. Local Government Councils (LGCs);
Also observes that this provision of the Act is no longer consistent with the current Interpretation of Sections 162(5) and (6) CFRN 1999 as recently determined by the Supreme Court in its judgment of July 2024;
Further observes that it is imperative to urgently harmonize the provisions of Section 5 of the Act with the Constitution and its current interpretation by the Supreme Court, and aware that the representatives of the States had always represented LGCs at FAAC.
He said, however, in light of the Current position of the Constitution, as interpreted by the Supreme Court, it has become imperative that a representative of LGCs per State and Area Councils be nominated to represent their interest at FAAC.
The Senate, accordingly resolves to
Communicate this resolution to the Hon Minister of Finance and Coordinating Minister of the economy, as the Chairman of FAAC, for his urgent information and necessary action; and Seeks the concurrence of the House of Representatives.
Cov/Bashir M
