The Senate has called on the Federal Government to include representatives from each Local Government Council (LGC) across the country—and from each Area Council in the Federal Capital Territory—in the deliberations of the Federation Account Allocation Committee (FAAC).
This resolution followed a motion sponsored by Deputy Senate President, Senator Barau Jibrin (Kano North), during Tuesday’s plenary. The Senate directed that the decision be immediately communicated to the Minister of Finance and Coordinating Minister of the Economy, who currently chairs FAAC.
Senator Jibrin emphasized that Local Government Councils, as the third tier of government recognized under Section 7(1) of the 1999 Constitution (as amended), are constitutionally entitled to a direct share from the Federation Account. He further cited a landmark Supreme Court judgment delivered in July 2024, which clarified that state governments merely serve as conduits for transmitting LGC allocations, with no ownership or discretionary power over such funds.
Currently, FAAC is composed of representatives from only the federal and state governments. However, lawmakers noted that Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981, which excludes LGCs from FAAC participation, is now inconsistent with constitutional provisions in light of the court’s interpretation.
“The inclusion of local government representatives in FAAC is essential for transparency, accountability, and ensuring that grassroots governance receives its rightful allocation,” Senator Jibrin argued.
The Senate’s move is seen as a significant step toward strengthening constitutional compliance and financial transparency at the grassroots level, aligning fiscal policy with judicial precedent and democratic accountability.
