The Senate has urged the Federal Government to include one representative from each local government council in the states and one from each area council in the Federal Capital Territory in the deliberations of the Federation Account Allocation Committee (FAAC). It also mandated that this resolution be immediately communicated to the Minister of Finance and Coordinating Minister of the Economy, who chairs the FAAC. This resolution, aimed at reinforcing constitutional adherence and promoting financial transparency at the grassroots level, was triggered by a motion from Senator Barau Jibrin (Kano North). He noted that local government councils, recognized as the third tier of government under Section 7(1) of the 1999 Constitution (as amended), are constitutionally entitled to direct allocations from the Federation Account. The Senate referenced a Supreme Court ruling which affirmed that state governments merely act as channels for transferring local government funds and do not possess any ownership or discretionary authority over those allocations. Lawmakers further pointed out that while FAAC currently includes only federal and state representatives, Section 5 of the Allocation of Revenue (Federation Account, etc.) Act 1981 excludes local governments—a provision now considered unconstitutional in light of the Supreme Court’s July 2024 judgment. The Senate concluded that with the legal landscape evolving, direct representation of local governments in FAAC is now necessary to protect their interests and ensure greater transparency in revenue distribution.