Senate Demands Direct FAAC Representation For Nigeria’s 774 Local Government Councils

The Nigerian Senate has called on the federal government to amend the current structure of the Federation Account Allocation Committee (FAAC) to include representatives from all 774 local government councils and area councils across the 36 states and the FCT.

This demand follows the Senate’s observation that ‘Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981’ restricts FAAC membership to only federal and state government representatives, leaving out local governments—the third tier of government.

To address this, the Senate resolved to formally notify the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs FAAC, requesting urgent attention to the matter. It also announced plans to seek concurrence from the House of Representatives.

The resolution was triggered by a motion titled “Urgent Need to Alter the Composition of the Federation Account Allocations Committee (FAAC) by Including Representatives of Local Governments and Area Councils,” which was sponsored by Deputy Senate President, Senator Jibrin Barau (APC, Kano North), and presented during Tuesday’s plenary session by Senator Isah Jibrin (APC, Kogi East).

While presenting the motion, Senator Jibrin stated, “The Senate notes that LGCs established by Section 7(1) CFRN 1999, as a 3rd tier of the Federation, are entitled as such and by Section 162(3) CFRN 1999 to share directly in Federation Account Allocations as benefitting entities.”

He further pointed out that, “Also notes that the Supreme Court has construed Sections 162(5) and (6) CFRN 1999, to the effect that the States are agents of the Federation to collect local government allocations from the Federation Account and pay to LGCs and did not give the States any right or interest in the said allocations to the LGCs from the Federation Account. The Supreme Court went further to also state that the duty of the States is to simply convey to the LGCs their allocations from the Federation Account.”

Citing constitutional backing, he stressed, “Aware that the Supreme Court has further recognised that the approach of a direct payment to the LGCs will achieve the intention and purpose of the Constitution and accord with the smooth running of the system of paying the LGCs their allocations from the Federation Account.”

Jibrin added that, “Also aware that the Supreme Court has also pronounced to the effect that paying the LGCs through the States of the Federation has not worked; therefore, justice demands that LGCs’ allocations from the Federation Account should henceforth be paid directly to the LGCs.”

He highlighted the outdated nature of the existing legislation, saying, “Observes that section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 prescribes the membership of the Federation Account Allocation Committee (FAAC) to be only representatives of the Federal Government and State Governments to the exclusion of the 3rd tier of Government, i.e., Local Government Councils (LGCs);”

The lawmaker emphasized, “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 judgement of July 2024;” and concluded that, “Further observes that it is imperative to urgently harmonise the provisions of Section 5 of the Act with the Constitution and its current interpretation by the Supreme Court.”

He rounded off by noting, “Aware that the representatives of the States had always represented LGCs at FAAC; however, in light of the current position of the Constitution, as interpreted by the Supreme Court, it has become imperative that a representative of LGCs per state and area council be nominated to represent their interest at FAAC.”