Senate Passes Motion for Inclusion of 774 LG, FCT Councils in FAAC
The Senate has passed a resolution calling on the Federal Government to immediately include representatives from all 774 Local Government Councils (LGCs) across the nation and the six Area Councils in the Federal Capital Territory in the deliberations of the Federal Account Allocation Committee (FAAC).
The resolution, a step towards ensuring constitutional compliance and empowering the third tier of government, was triggered by a compelling motion put forth by Senator Barau Jibrin, representing Kano North Senatorial District.
Senator Jibrin, in his impassioned presentation to the Senate, underscored the constitutional recognition of Local Government Councils as the third tier of government under Section 7(1) of the 1999 Constitution (as amended).
He argued that this constitutional status inherently entitles LGCs to a direct and equitable share from the Federation Account.
The Senate’s decision draws significant weight from a landmark Supreme Court ruling delivered in July 2024.
This pivotal judgment unequivocally clarified that State Governments function solely as conduits for the transfer of funds allocated to Local Governments from the Federation Account and possess no proprietary rights or discretionary authority over these funds.
The apex court’s pronouncement effectively dismantled the long-standing practice of states acting as the sole representatives of local governments in FAAC discussions.
Further amplifying the need for direct representation, the Senate highlighted the existing legal framework, specifically Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981.
This Act, which currently limits FAAC membership to representatives of the Federal and State Governments, was deemed by the Senate to be inconsistent with the Constitution, particularly in light of the Supreme Court’s recent clarification.
Lawmakers on the floor of the Senate unanimously voiced their support for the motion, emphasizing that while State Governments had historically served as the voice for local governments in FAAC, the evolving legal landscape now necessitates a paradigm shift.
They argued that direct representation is crucial to safeguard the financial interests of local governments, enhance transparency in the revenue sharing process, and ensure that allocations are utilized effectively for the development and well-being of communities at the grassroots level.
Senator Jibrin expressed his satisfaction with the overwhelming support for the motion. “This is a victory for our local government system and a significant step towards deepening democracy and good governance at the sub-national level.
“Direct representation in FAAC will empower local government councils to articulate their needs and ensure that they receive their rightful share of the Federation Account, leading to more impactful development projects in our communities,” he stated.
The Senate has formally directed its Clerk to communicate this resolution to the Minister of Finance and Coordinating Minister of the Economy, who chairs the FAAC, for immediate implementation.
The expectation within the Senate is that the Federal Government will act swiftly to adhere to this resolution, thereby upholding the tenets of the Constitution and fostering a more transparent and equitable revenue sharing mechanism in Nigeria.
This development has been met with cautious optimism by local government administrators and community development advocates across the country.
Many believe that direct participation in FAAC deliberations will provide LGCs with a much-needed platform to advocate for their specific needs and challenges, ultimately leading to more efficient allocation and utilization of resources for local development.
