The Nigerian Senate has urged the Federal Government to ensure that each local government council across the country — including one representative per area council in the Federal Capital Territory — is given direct representation in the Federal Account Allocation Committee (FAAC).
In a resolution aimed at promoting constitutional compliance and financial transparency at the grassroots, the Senate directed that this decision be formally communicated to the Minister of Finance and Coordinating Minister of the Economy, who chairs the FAAC, for immediate implementation.
The motion was sponsored by Senator Barau Jibrin (Kano North), who emphasized that local government councils are constitutionally established as the third tier of government under Section 7(1) of the 1999 Constitution (as amended), and are thus entitled to receive direct allocations from the Federation Account.
Lawmakers pointed to a landmark Supreme Court ruling (July 2024), which affirmed that state governments are merely intermediaries in disbursing funds to local governments — and do not possess ownership or discretion over the allocations.
The Senate noted that while the Allocation of Revenue (Federation Account, etc) Act of 1981 currently limits FAAC membership to federal and state representatives, this arrangement is now legally outdated and inconsistent with the Constitution, given the evolving judicial interpretation.
In light of this, the Senate called for the direct inclusion of LG representatives in FAAC deliberations, stressing that such a move would protect local government interests and ensure more accountable and equitable distribution of national resources.
