With the financial autonomy granted local government councils in the country, the Senate on Tuesday asked the federal government (FG) to allow the councils to be represented at the meetings of the Federation Account Allocation Committee, FAAC.
The Senate wants each state and the FCT to have one representative in the committee to safeguard the interests of the councils.
According to the Senate, it observed that Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 prescribes the membership of the FAAC to be only representatives of the FG and State Governments to the exclusion of the third tier of Government—Local Government Councils.
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Resolutions of the Senate on Tuesday were sequel to a motion titled, “Urgent Need to alter the Composition of FAAC by including representatives of Local Governments and Area Councils”
The motion was sponsored by the Deputy President of the Senate, Senator Jibrin Barau, APC, Kano North and presented at plenary by Senator Isah Jibrin, APC, Kogi East.
Presenting the motion, he said, “The Senate: Notes that LGCs established by Section 7(1) CFRN 1999, as a 3rd tier of the Federation, are entitled as such and by Section 162(3) CFRN 1999 to share directly in Federation Account Allocations as benefitting entities;
“Also notes that the Supreme Court has construed Sections 162(5) and (6) CFRN 1999, to the effect that the States are agents of the Federation to collect Local Government allocations from the Federation Account and pay to LGCs and did not give the States any right or interest in the said allocations to the LGCs, from the Federation Account.
The Supreme Court went further to also state that the duty of the States is to simply convey to the LGCs their allocations from the Federation Account;
“Aware that 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;
“Also aware that 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;
“Observes that section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 prescribes the membership of the Federation Account Allocation Committee (FAAC) to be only representatives of the Federal Government and State Governments to the exclusion of the 3rd tier of Government, i.e. Local Government Councils (LGCs);
“Also observes that this provision of the Act is no longer consistent with the current interpretation of Sections 162(5) and (6) CFRN 1999 as recently determined by the Supreme Court in its judgment of July 2024;
“Further observes that it is imperative to urgently harmonize the provisions of Section 5 of the Act with the Constitution and its current interpretation by the Supreme Court.
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“Aware that the 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 interest at FAAC.”
The Senate then resolved to communicate the resolution to the Minister of Finance and Coordinating Minister of the economy, Wale Edun as the Chairman of FAAC, for his urgent information and necessary action; and
The Upper Chamber said that it will seek the concurrence of the House of Representatives on the matter too.
By Alade Adisa
