Senate seeks LG reps’ inclusion in FAAC, cites supreme court ruling

The senate on Tuesday called for the urgent inclusion of LGAs and area council representatives in the federation account allocation committee (FAAC).

The motion, sponsored by Barau Jibrin, senator representing Kano north and deputy senate president, seeks to harmonise the composition of FAAC with recent constitutional interpretations by the supreme court.

Jibrin Isah, senator representing Kogi east, led the motion during the plenary on behalf of Barau, who was the presiding officer

The deputy senate president noted that section 7(1) of the 1999 constitution recognises LGAs as the third tier of government, entitled to a direct share of the federation account under section 162(3).

He said the supreme court has made clear that sections 162(5) and (6) of the constitution do not confer any proprietary interest on state governments over LG allocations.

“The duty of the states is simply to convey allocations from the federation account to local governments,” he said.

He added that the apex court also recognised that direct payment to LGs would be consistent with the constitution and ensure smoother financial administration.

“Paying LGCs through the states has not worked. Justice demands that allocations from the federation account be paid directly to the local governments,” he added.

Barau further observed that section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 currently lists only federal and state representatives as members of FAAC.

He said the provision no longer aligns with the supreme court judgment of July 2024, noting that it must be urgently updated to reflect the constitutional reality.

“Representatives of the states had always stood in for the local governments at FAAC, but in light of the supreme court’s position, it is now imperative that each state’s LGCs and the FCT’s area councils have direct representation,” he added.

Adamu Aliero, senator representing Kebbi central, said the motion should be formalised into a bill.

“We should even go beyond an ordinary motion. We should formalise it by presenting a bill making it mandatory for local government and area council representation at FAAC meetings,” Aliero said.

“It is abnormal for a beneficiary of the federation account not to be around whenever distribution is taking place.”

Aliero said when he served as governor in 1999, LGs received funds directly from the federation account, which according to him, restored accountability.

“This idea is welcome, and it will bring transparency and accountability in the way local government funds are being given out,” he added.

Simon Lalong, senator representing Plateau south, said the motion supports grassroots development, which is the only true path to national progress.

“If we are talking about autonomy, if we are talking about grassroots development, the only place that we can ensure Nigeria moves forward is at the local government level,” Lalong said.

“Once there are small LPOs going around in that place and the money is there, it will bring up a lot of millionaires.”

Diket Plang, senator representing Plateau central, also supported the motion and urged the senate not to stop at a resolution.

“I have been a councillor and a local government chairman. If there is direct funding from the federation account to the local government, there will be a lot of developmental changes,” Plang said.

“Whoever has a hand in the federation account should be a participant when sharing is taking place.”

Idiat Adebule, senator representing Lagos west, said the motion was well-timed and would promote transparency.

“Nigerians are actually waiting for these kinds of motions,” she said.

“It will enable those who are part of the sharing formula to be at the table, for them to know what exactly is being shared, what, and why.”

The senate urged the federal government to ensure that one representative per state and the federal capital territory (FCT) is included in FAAC to represent LG interests.

The upper chamber also resolved to communicate the resolution to the minister of finance and coordinating minister of the economy, who is the chairman of FAAC, for immediate action.

The senate also sought the concurrence of the house of representatives.