The Senate has called on the Federal Government to include representatives from each local government council across the states and one from each area council in the Federal Capital Territory (FCT) in the Federal Account Allocation Committee (FAAC) meetings.

The resolution, which followed a motion by Senator Barau Jibrin (Kano North), mandates that the Minister of Finance and Coordinating Minister of the Economy who chairs FAAC be immediately informed of the directive.

Senator Jibrin argued that local governments are constitutionally recognized as the third tier of government under Section 7(1) of the 1999 Constitution (as amended), and are entitled to receive their allocations directly from the Federation Account.

The Senate referenced a Supreme Court ruling delivered in July 2024, which clarified that state governments act merely as conduits for local government funds and do not possess any discretionary powers over their disbursement.

Lawmakers noted that FAAC currently comprises only federal and state representatives, pointing out that Section 5 of the Allocation of Revenue Act (1981), which excludes local government participation, is now unconstitutional given the apex court’s interpretation.

They emphasized that while state governments have historically represented local government councils (LGCs) at FAAC meetings, the legal landscape has shifted, necessitating direct LG involvement to ensure financial transparency and equitable revenue distribution.