In a landmark move to reinforce grassroots financial autonomy and constitutional integrity, the Nigerian Senate has urged the Federal Government to ensure direct representation of local government councils in the Federal Account Allocation Committee (FAAC).
The Senate’s resolution, passed during plenary, calls for the inclusion of one representative from each of Nigeria’s 774 local government councils and one from each area council in the Federal Capital Territory (FCT) in FAAC deliberations. The upper chamber directed that the resolution be immediately transmitted to the Minister of Finance and Coordinating Minister of the Economy, who also chairs FAAC.
The call followed a motion sponsored by Senator Barau Jibrin (Kano North), who argued that the current exclusion of local governments from the revenue-sharing table undermines their constitutional status. Section 7(1) of the 1999 Constitution (as amended), he noted, clearly designates local government councils as the third tier of government — entitled to a direct allocation from the Federation Account.
The Senate also referenced the July 2024 Supreme Court judgment, which clarified that state governments are merely intermediaries in transferring local government funds, and cannot exercise ownership or discretion over such allocations. The ruling declared existing practices inconsistent with the Constitution.
Lawmakers further pointed out that Section 5 of the Allocation of Revenue (Federation Account, etc) Act of 1981, which excludes local governments from FAAC membership, has now been rendered obsolete by the Supreme Court’s interpretation.
While local governments have historically been represented by state governments at FAAC meetings, the Senate maintained that emerging legal standards now necessitate direct participation by LGC representatives to ensure transparency, equity, and accountability in revenue distribution.
This resolution, if implemented, could mark a transformative shift in Nigeria’s intergovernmental fiscal relations and set a precedent for reinforcing the autonomy of local governments nationwide.
