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Senate calls for recomposition of FAAC

Robert Imoh by Robert Imoh
May 13, 2025
in News
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Senate calls for recomposition of FAAC
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The Senate has asked the Federal Government to ensure that representatives of Local Government Councils (LGCs) per state, and the Federal Capital Territory (FCT) Councils, are included in the Federation Account Allocations Committee (FAAC).

This, the upper chamber said, is to ensure representation of their interests.

The resolution followed the passage of a motion sponsored by the Deputy Senate President, Sen. Jibrin Barau, during Tuesday’s plenary

The motion is on “The urgent need to alter the composition of FAAC by including representatives of Local Governments and Area Councils”.

Sen. Isah Jibrin (APC-Kogi) presented the motion on behalf of the Deputy Senate President

He said that LGC, as established by Section 7 (1) of the 1999 Constitution, is the third tier of the Federation and therefore to share directly in Federation Account Allocations as benefitting entities.

Citing the recent Supreme Court ruling that states do not have rights or interests in allocations to the LGCs from the Federation Account, he called for the harmonisation of different sections relating to payment to LGCs to provide for their inclusion.

“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.

“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 observed that section 5 of the Allocation of Revenue Act 1981 prescribes the membership of FAAC to be only representatives of the Federal Government and State Governments, to the exclusion of the third tier of Government.

“This is inconsistent with the current interpretation of Sections 162(5) and (6) of the 1999 Constitution as recently determined by the July 2024 Supreme Court judgement”.

The senator noted that it is imperative to urgently harmonise the provisions of Section 5 of the Act with the Constitution and its current interpretation by the Supreme Court.

“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 said.

Also at plenary on Tuesday, a bill to establish the Yaba Federal University of Technology and Vocational Studies, Yaba, Lagos, scaled second reading.

Sponsored by the Senate Leader, Sen. Opeyemi Bamidele, the bill makes provisions for the management and administration and other matters related to the institution.

It was referred to the Senate Committee on Tertiary Institutions and TETFund for further legislative processing.

 

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