By Peter Onyekachukwu 
By Peter Onyekachukwu
In a landmark move aimed at strengthening the financial independence of Nigeria’s third tier of government, the Senate has called on the federal government to include local government representatives as full members of the Federation Account Allocation Committee (FAAC).
The resolution, reached during Tuesday’s plenary, seeks to ensure each state of the federation and the Federal Capital Territory (FCT) is represented by a nominee from its local government councils at FAAC meetings—marking a shift from decades of exclusion.
The Senate’s call follows the recent Supreme Court judgment of July 2024, which upheld the financial autonomy of local governments, ruling that state governors can no longer withhold funds meant for LGAs from the Federation Account.
Senator Isa Jibrin (Kogi East), who led the debate on behalf of Deputy Senate President Barau Jibrin (APC, Kano North), said the move to amend the existing arrangement was both constitutional and urgent.
“Section 5 of the Allocation of Revenue Act, as it stands, only recognizes representatives of the federal and state governments. This is now inconsistent with the interpretation of Sections 162(5) and (6) of the 1999 Constitution, as clarified by the Supreme Court,” Jibrin said.
He added that while state governors had historically represented local governments at FAAC, the new constitutional interpretation demands direct representation of LGAs to safeguard their financial interest.
“This is not just a procedural update. It is a constitutional obligation that reflects the evolving structure of governance in our democracy,” he stressed.
The motion received unanimous support from senators across party lines, including Titus Zam (Benue North West), Simon Lalong (Plateau South), Diket Plang (Plateau Central), Adams Oshiomhole (Edo North), Adamu Aliero (Kebbi Central), and Idiat Adebule (Lagos West), who all emphasized the importance of equitable fiscal representation.
Senator Adams Oshiomhole noted, “If local governments are to function effectively and serve the people directly, they must be part of the table where allocations are discussed and decided.”
The Senate also resolved to communicate the decision to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs the FAAC, for implementation. Additionally, the upper chamber will seek concurrence from the House of Representatives to give the resolution legislative weight.
This move is expected to pave the way for a more transparent and accountable allocation system, with local governments empowered to directly receive and manage their share of national revenue.