Abuja, Nigeria – The Senate has urged the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to include representatives from Local Government Councils (LGCs) in each state and the Federal Capital Territory (FCT) within the Federation Account Allocations Committee (FAAC). This directive follows the passage of a motion sponsored by Deputy Senate President Barau Jibrin, emphasizing the urgent need to alter FAAC’s composition to reflect the interests of local government and area councils.
Senator Isah Jibrin, presenting the motion on behalf of the Deputy Senate President, highlighted that Section 7(1) of the 1999 Constitution establishes LGCs as the third tier of government, thus entitling them to direct shares from the Federation Account. He cited a recent Supreme Court ruling affirming that states possess no rights or interests in allocations meant for LGCs. Senator Jibrin called for the harmonization of relevant sections to ensure the direct inclusion of LGCs in the allocation process.
“The Supreme Court has further recognised that the approach of a direct payment to the LGCs will achieve the intention and purpose of the Constitution and accord with the smooth running of the system of paying the LGCs their allocations from the Federation Account,” Senator Jibrin stated. “The Supreme Court has also pronounced to the effect that paying the LGCs through the States of the Federation has not worked, therefore justice demands that LGCs allocations from the Federation Account should henceforth be paid directly to the LGCs.”
He pointed out that Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 currently limits FAAC membership to representatives of the Federal and state governments, excluding the local government tier. This exclusion, he argued, contradicts the Supreme Court’s recent interpretation of Sections 162(5) and (6) of the 1999 Constitution.
Senator Jibrin stressed the urgency of aligning Section 5 of the Act with the Constitution and the Supreme Court’s interpretation. “Representatives of the states had always represented LGCs at FAAC, however, in light of the current position of the Constitution as interpreted by the Supreme Court, it has become imperative that a representative of LGCs per state and area councils be nominated to represent their interests at FAAC,” he concluded.
In a separate matter during the plenary session, the Senate passed a bill for the second reading to establish the Yaba Federal University of Technology and Vocational Studies in Yaba, Lagos State. The bill, sponsored by Senate Leader Opeyemi Bamidele, outlines the institution’s management, administration, and related affairs. It has been referred to the Senate Committee on Tertiary Institutions for further legislative action.
