The House of Representatives on Thursday pressed for the composition of the Federal Account Allocation Committee (FAAC) to include local government areas and the Federal Capital Territory (FCT) Area Councils.
Consequently, the House urged the federal government to ensure that the National President of the Association of Local Government of Nigeria(ALGON) is a member of FAAC on behalf of the local government council chairmen.
This decision was a sequel to the adoption of a motion sponsored by the member representing Magama/Rijau Federal Constituency of Niger state, Hon. Shehu Saleh at plenary
Moving the motion, Saleh said Section 7(1) of the Constitution of Nigeria, 1999 (as amended) establishes Local Government Area Councils as a third-tier system of Government, while Section 162(3) of the Constitution of the Federal Republic of Nigeria, 1999 provides for the councils to share directly in Federation Account Allocations as benefitting entities.
He said the Supreme Court has construed Sections 162(5) and (6) of the Constitution to the effect that the states are agents of the federation to collect local Government allocations from the Federation Account are paid to LGCs, and do not give the states any right or interest in the said allocations to the councils.
“The Supreme Court also went further to state that the States must convey simply to the LGCs their allocations from the Federation Account. 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 Local Government Area Councils 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 Local Government Area Councils’ allocations from the Federation Account should henceforth be paid directly to the LGCs,” the lawmaker stated.
Saleh observed that Section 5 of the Allocation of Revenue (Federation Account, etc) Act 1981 prescribes that the Federation Account Allocation Committee (FAAC) be composed of only representatives of the Federal and State Governments, excluding the third tier of government.
The lawmaker said the 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.
He also observed 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.
“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 be nominated to represent their interest at FAAC.
Adopting the motion, the House agreed to communicate its resolution to the Minister of Finance and Coordinating Minister of the Economy, as the Chairman of FAAC, for necessary action. It mandated the relevant committees to ensure compliance.
