Senate Moots Altering FAAC Composition To Include LGA Reps
BY PATRICK WEMAMBU
The Senate of the 10th National Assembly Tuesday suggested the possibility of altering the composition of the Federation Accounts Allocation Committee (FAAC) with a view to including representatives of Local Govt Areas and Area Councils in its membership.
In a motion sponsored by Senator Jibrin Barau (Kano North) and titled, ‘Urgent Need To Alter The Composition Of Federation Account Allocations Committee (FAAC) By Including Representatives Of Local Governments And Area Councils,’ – the Senate noted that Local Govt Councils established by Section 7(1) CFRN 1999, as a 3rd tier of the Federation, are entitled to be FAAC members.
Similarly, it was observed that by Section 162 (3) CFRN 1999 the sub-nationals in question are expected to share directly in Federation Account Allocations as benefitting entities.
The motion elucidated that the Senate; “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.
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“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; and
“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.”
Accordingly, therefore, the Upper House resolved to:
i. Urge the Federal Government to ensure that a representative of Local Governments Councils one per state and FCT Councils are included to represent their interest at FAAC;
ii. Communicate this resolution to the Hon Minister of Finance and Coordinating Minister of the economy, as the Chairman of FAAC, for his urgent information and necessary action; and
iii. Seek the concurrence of the House of Representatives.
