The Nigerian Senate has called on the Federal Government to ensure that representatives from each Local Government Council (LGC) and the Federal Capital Territory (FCT) Area Councils are included in the Federation Account Allocation Committee (FAAC). This follows a recent Supreme Court ruling affirming the constitutional right of LGCs to receive direct allocations from the Federation Account.
The Senate’s resolution came after it passed a motion sponsored by Deputy Senate President, Senator Jibrin Barau, during Tuesday’s plenary session. The motion, titled “The Urgent Need to Alter the Composition of FAAC by Including Representatives of Local Governments and Area Councils,” was presented by Senator Isah Jibrin (APC-Kogi) on behalf of Barau.
Senator Jibrin emphasized that Local Government Councils, as recognized in Section 7(1) of the 1999 Constitution, constitute the third tier of government and should therefore be direct beneficiaries of Federation Account allocations.
He referenced the recent Supreme Court judgment, which declared that states have no legal claim over funds allocated to LGCs. The court affirmed that direct payment to LGCs aligns with the constitutional framework and supports the efficient distribution of federal resources. It further ruled that the current practice of routing LGC allocations through state governments is ineffective.
Senator Jibrin pointed out that Section 5 of the Allocation of Revenue Act (1981) currently limits FAAC membership to representatives of the federal and state governments, excluding local governments. He argued that this is now at odds with Sections 162(5) and (6) of the Constitution, as interpreted by the Supreme Court’s July 2024 judgment.
He stressed the need to amend the Act to reflect this updated constitutional interpretation and ensure that each state and the FCT have a representative from their LGCs or Area Councils included in FAAC deliberations to protect their interests.
In a related development, the Senate also passed the second reading of a bill to establish the Yaba Federal University of Technology and Vocational Studies in Lagos. Sponsored by Senate Leader Opeyemi Bamidele, the bill outlines provisions for the institution’s management and operations. It has been referred to the Senate Committee on Tertiary Institutions and TETFund for further review.