The Senate has called on the Federal Government to ensure that all the 774 Local Government councils in the country are included in the Federation Account Allocation Committee (FAAC), to guarantee their direct involvement in the revenue-sharing process among the three tiers of government.
The Red Chamber resolved that the move is necessary for full implementation of the July 2024 Supreme Court’s ruling, which ordered that local government funds be released directly to the councils without any interference by respective state governments.
Senate’s resolutions followed a motion sponsored to that effect by Senator Barau Jibrin recommending that each state and the FCT appoint a representative of the Local Councils to FAAC to protect grassroots interests.
Jibrin, while leading the debate on the motion titled “Urgent Need to Alter the Composition of Federation Account Allocations Committee (FAAC) by Including Representatives of Local Governments and Area Councils,” stated that the Supreme Court judgment had effectively invalidated existing arrangements where local government funds were funneled through state joint accounts.
He 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,” adding that local councils must now have representation at FAAC.
The motion highlighted several constitutional points and judicial pronouncements, including 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.”