The Senate has called on the Federal Government to ensure the inclusion of one representative from each local government council across the states, and one per area council in the Federal Capital Territory, in Federal Account Allocation Committee (FAAC) deliberations. This move aims to strengthen constitutional compliance and financial transparency at the grassroots level.

The resolution followed a motion sponsored by Deputy Senate President Senator Barau Jibrin, who emphasized that local government councils, as constitutionally recognized third-tier governments under Section 7(1) of the 1999 Constitution (as amended), are entitled to a direct share from the Federation Account.

The Senate cited the Supreme Court’s ruling, which clarified that state governments act merely as conduits for transferring local government allocations and hold no ownership or discretionary powers over those funds. The lawmakers noted that while FAAC currently includes only representatives of the federal and state governments, Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 excludes local governments, a provision now deemed inconsistent with the Constitution.

The Senate directed that the resolution be communicated to the Minister of Finance and Coordinating Minister of the Economy, who serves as the FAAC Chairman, for immediate action. This move is expected to safeguard local government interests and enhance transparency in revenue sharing.

The Senate’s decision is a significant development in the ongoing efforts to ensure that local governments receive their fair share of the country’s revenue. By including local government representatives in FAAC deliberations, the Senate aims to promote transparency and accountability in the allocation of funds to the grassroots level.