From Kenneth Udeh, Abuja
The Nigerian Senate, on Tuesday, deliberated on a motion to include representatives from Local Government Councils (LGCs) and Federal Capital Territory (FCT) Area Councils in the Federation Account Allocation Committee (FAAC), reinforcing Nigeria’s federal structure.
Sponsored by Senator Barau Jibrin (APC, Kano North) and presented by Senator Isah Jibrin (APC, Kogi East), the motion emphasised LGCs’ constitutional right to direct Federation Account allocations under Sections 7(1) and 162(3) of the 1999 Constitution (as amended).
Senator Barau noted a July 11, 2024, Supreme Court ruling that clarified states act only as conduits for LGC funds, with no proprietary rights over them. The court criticised the inefficiencies of state intermediaries and mandated direct allocations to promote LGC financial autonomy and grassroots service delivery.
Barau noted that FAAC’s current structure, under Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981, includes only federal and state representatives, excluding LGCs despite their constitutional status as the third tier of government.
“This provision of the Act is no longer consistent with the current interpretation of Sections 162(5) and (6) of the 1999 Constitution, as recently determined by the Supreme Court,” Barau stated, urging harmonisation of the law with the Constitution to ensure legal alignment.
The Senate, presided over by Senate President Godswill Akpabio, unanimously adopted the motion, calling on the Federal Government to include one representative per state’s LGCs and FCT Area Councils in FAAC to safeguard their interests. The resolution will be communicated to the Minister of Finance and FAAC Chairman, Wale Edun, for immediate implementation. The Senate also urged the House of Representatives to concur for swift legislative action.
This move, if implemented, could enhance fiscal accountability and direct grassroots development by ensuring LGCs receive their 20.6% share of Federation Account funds—totaling N293.82 billion in May 2024—without state interference.