Include LG councils in FAAC, Reps task presidency

House of Representatives on Thursday, underscored the urgent need to include representatives of Local Government Areas and FCT Area Councils in the composition of the Federal Account Allocation Committee (FAAC), in tandem with the Supreme Court judgement on administrative and financial autonomy of the third tier of government.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Shehu Saleh Rijaw, which was overwhelmingly supported by Chairman, House Committee on Public Accounts, Rep. Bamidele Salam who underscored the need for the House to give legislative effect to the Supreme Court judgement.

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In his lead debate, Hon. Rijaw observed that Section 7( 1) of the 1999 Constitution (as amended) established Local Government Area Councils as a third tier system of Government, while Section 162(3) provides for the entitles the Local Government Councils to share directly in Federation Account Allocations as benefiting entities.

“The House also notes that the Supreme Court has construed Sections 162(5) and (6) Constitution of Federal Republic of Nigeria, 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 Local Government Arca Councils, from the Federation Account.

“The Supreme Court went further to also state that the duty of the States is to simply convey to the LGCs the allocations from the Federation Account;

“The House is 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 Local Government Area Councils their allocations from the Federation Account.

“The House is also aware that the Supreme Court has also pronounced with 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 House 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).

“The House 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.

“The House 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.

“The House is aware that the representatives of the States had always represented LGCs at FAAC, however. in hight 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 FCT Arca Councils be nominated to represent their interest at FAAC.”

To this end, the lawmakers urge the Federal Government to ensure that Local Government Councils per State and FCT Councils are included as members of FAAC; and communicate the resolution to the Minister of Finance and Coordinating Minister of the economy, as the Chairman of FAAC, for necessary action.

In his intervention, Majority Deputy Whip, Hon. Isiaka Ibrahim who expressed support for the intendment of the motion, said: “I’ve listened to what all my leaders and colleagues have said, but I’m surprised that everybody jumped Section 162, Subsection 3, which makes this motion very potent, except we want to abdicate our responsibilities.

“Section 162.3 says, ‘Any amount standing to the credit of the federation account shall be distributed among the Federal and State Governments and the Local Government Councils in each State on such terms and in such manner as may be prescribed by the National Assembly.

“The drafters of this Constitution, they have really empowered this National Assembly to support the constitution.”

Excited by Hon. Ibrahim’s position, Speaker Tajudeen beckoned to Hon. Bob Solomon who had earlier argued that the motion should have come in form of a bill, hence antagonised the intendment of the motion.

He said: “Please, just check while he is reading this. No, we will not have time. No, no, no, we don’t have time to argue. It’s just for you to be guided.”

Continuing, Hon. Ibrahim said: “With due respect, I’m talking to the constitution here. Except what I have here, which is my reference point, is different from what every other place is. So, the constitution says, in such a term, or terms, as may be prescribed by the National Assembly.

“That is not what is established in here, on this motion, it’s okay, if you are entitled to something, you now want to shave his head behind him. What we are talking, and my position, Mr. Speaker, sir, is, it would be very unwieldy asking several 74 council chairmen to converge on Abuja for sharing. They have their ALGON.

“I would have preferred if this could be amended, which is the representatives of the chairman, to be part, at the national level, which I think there are three or four thereabout, to be part of this.

“Whatever happens there, we will be protecting what we have been avoiding in this country; if we allow this motion to pass because, Supreme Court has spoken. People have been, and even on this floor, we have been standing, defending how Local Governments have been so relegated and not considered.

“And with this, Mr. Speaker, this h6ouse will be writing its name on, with this motion, that we are standing behind them, standing behind the people, and making sure that Local Government, that we know they are at the grassroots, and we are protecting them to get what they actually deserve. That’s my submission, sir, Mr. Speaker.”

Hence, the House mandated its Committee on States and Local Government to ensure compliance.