Senate Directs Edun to Ensure LGs’ Inclusion in FAAC Meetings
CHIGOZIE AMADI
The Senate yesterday urged the federal government to ensure the inclusion of the 774 local government councils in the country in the meetings of the Federation Account Allocation Committee (FAAC).
The Red Chamber said doing so would guarantee their direct involvement in the revenue-sharing process among the three tiers of government, arguing that the move was necessary for the full implementation of the July 2024 Supreme Court’s judgment.
The apex court had ordered that local government funds should be released directly to the third tier of government without any interference by the respective states.
The Senate resolutions followed a motion sponsored to that effect by the Deputy Senate President, Senator Jibrin Barau. The Kano North senator recommended that each state and the Federal Capital Territory (FCT) should appoint a representative each from the local councils to FAAC in order to protect the grassroots interests.
Barau’s lead debate on the motion was titled: “Urgent Need to Alter the Composition of Federation Account Allocations Committee (FAAC) by Including Representatives of Local Governments and Area Councils.”
The Senate in adopting and passing the motion, therefore directed that the resolution be forwarded to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also serves as the FAAC Chairman, for appropriate action.
Barau’s motion emphasised that the Supreme Court judgment had effectively invalidated existing arrangements where local government funds were funneled through state joint accounts.
Barau said: “By virtue of the apex court’s judgment delivered in July 2024, funds are now to be released directly to local governments.”
He further argued that the judgment had rendered obsolete “every earlier existing structure such as the payment of local government funds through the state joint account,” stressing the need for the local councils to have representation at FAAC.
The motion highlighted several constitutional points and judicial pronouncements. They included the recognition of local governments as the third tier of government under Section 7(1) of the 1999 Constitution.
It stated that they are “entitled as such and by Section 162(3) CFRN 1999 to share directly in Federation Account Allocations as benefitting entities.”
It further recalled the Supreme Court’s interpretation of Sections 162(5) and (6), clarifying that state governments are merely custodians tasked with transmitting funds to local councils and have no proprietary claim to those allocations.
Barau pointed out that the existing structure of FAAC, as defined in Section 5 of the Allocation of Revenue (Federation Account, etc.) Act of 1981, includes only representatives from the federal and state governments, thereby excluding the third tier.
“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,” the motion stated.
Given the new legal interpretation, the Senate maintained that the Revenue Allocation Act must be revised. It added, “It has become imperative that a representative of LGs per State and Area Councils be nominated to represent their interest at FAAC.”
