…urges Finance Minister to act on Supreme Court ruling
The Senate on Wednesday urged the Federal Government to ensure the inclusion of one representative from each local government council across the states, as well as one from each area council in the Federal Capital Territory (FCT), in the deliberations of the Federation Account Allocation Committee (FAAC).
The upper chamber also mandated that the resolution be conveyed to the Minister of Finance and Coordinating Minister of the Economy, who chairs the FAAC, for immediate implementation.
The resolution followed a motion moved by Senate Deputy President, Senator Barau Jibrin (Kano North), aimed at promoting constitutional compliance and financial transparency at the grassroots level.
Senator Jibrin argued that local government councils, being constitutionally recognised as the third tier of government under Section 7(1) of the 1999 Constitution (as amended), are entitled to receive allocations directly from the Federation Account.
The Senate cited a July 2024 Supreme Court judgment, which clarified that state governments merely serve as conduits for transmitting local government allocations and do not possess ownership or discretionary control over the funds.
Lawmakers noted that the current structure of FAAC, which includes only federal and state representatives, does not align with the Constitution. They observed that Section 5 of the Allocation of Revenue (Federation Account, etc) Act of 1981, which excludes local governments from the committee, had now become inconsistent with constitutional provisions, in light of the Supreme Court’s decision.
The Red Chamber stressed that the evolving legal interpretations necessitate the direct participation of local government representatives in FAAC to safeguard their interests and foster greater transparency in the allocation and utilisation of national revenues.
They warned that continued exclusion of LGs from FAAC proceedings undermines the constitutional status of local councils and hampers equitable grassroots development.
