SECTION

1. Establishment and  membership of the Joint Local Government Account Allocation Committee for each State.

2. Functions of the Committee.
3. Rendering of account.
4. Establishment of Joint Area Councils Account Allocation Committee for the Federal Capital Territory.

5. Functions of the Joint Local Government and Area Councils Allocation Committee.
6. Limit on power of State Government or Federal Capital Territory for borrowing money.
7. Limits of power to deduct or re-allocate any amount standing to the credit of State Joint Local Government Account, etc.
    
8. Report by the Accountant-General of the Federation.
9. Report by the Auditor-General for the Federation.
10. Short title.

An Act to provide for the monitoring of Revenue Allocation to Local Government
Councils from the Federation Account; and for related matters.                                                                                                                                          

[Commencement.]                        [      ]

1. Establishment and membership of the Joint Local Government Account Allocation Committee for each State 
 

(1)     Each State of the Federation shall establish a body to be known as the State
Joint Local Government Account Allocation Committee (hereinafter referred to as "the
Committee").

(2)     The Committee shall include the following members-

       (a)     the Commissioner or any other officer charged with the responsibility for Local Government in the State who shall be the Chairman;
               
       (b)     a Commissioner of Revenue Mobilisation, Allocation and Fiscal Commission provided that the Commissioner shall not serve in his own State;
       (c)     all the Chairmen of the Local Government Councils in the State;

       (d)    the Accountant-General of the State;

       (e)    a representative of the Accountant-General of the Federation; and

       (f)     a representative of the State Revenue Board.

(3) The Permanent Secretary of the State Ministry charged with responsibility for
Local Government or such officer as may be designated by the Chairman shall be the
Secretary to the Committee.

2. Functions of the Committee

The functions of the Committee shall be to-

       (a)              ensure that allocations made to the Local Govemment Councils in the State from the Federation Account and from the State concerned are promptly paid
into the State Joint Local Government Account;
       (b)              ensure that the funds paid into the State Joint Local Government Account under paragraph (a) of this section are distributed to the Local Government Councils in accordance with the provisions of the Constitution of the Federal Republic of Nigeria, 1999 and any law made in that behalf by the House of Assembly of the State; and

                                 (c)               monitor the payment and distribution of the funds mentioned in paragraphs (a) and (b) of this section so as to ascertain the actual amount paid to each Local
                                                     Government.
 

3. Rendering of account

(1) The Committee shall render monthly returns to the Federation Account Allocation Committee through the member representing Revenue Mobilisation, Allocation and
Fiscal Commission.
(2) The Federation Account Allocation Committee shall scrutinise the returns to it by the Committee and make quarterly returns through the Accountant-General of the Federation to each House of the National Assembly.

4. Establishment of Joint Area Councils Account Allocation Committee for the Federal Capital Territory
In case of the Federal Capital Territory, there is hereby established a Federal Capital
Territory Joint Area Councils Account Allocation Committee, which shall comprise the
following members-

       (a)      the Permanent Secretary of the Federal Capital Territory who shall be the Chairman:               

                                (b)      a Commissioner of Revenue Mobilisation, Allocation and Fiscal Commission, provided that the Commissioner is not from the Federal Capital Territory;         

                                (c)       the Chairman of each Area Council in the Federal Capital Territory;

                                (d)      one representative of the Accountant-General of the Federation;

                               (e)        the Director in charge of finance; and

      (f)         a Director in the Federal Capital Territory to be appointed by the Minister in charge of the Federal Capital Territory who shall be the Secretary of the Committee               

5. Functions of the Joint Local Government and Area Councils Allocation Committee 
The functions of the Federal Capital Territory Joint Area Councils Allocation Committee shall be to ensure that any allocation made to the Area Councils in the Federal
Capital Territory from the Federation Account and from the Federal Capital Territory are promptly paid into the Federal Capital Territory Joint Area Councils Account and distributed to the Area Councils in accordance with the provisions of any Act made in that behalf by the National Assembly.
 

6. Limit on power of State Government or Federal Capital Territory for borrowing money 
(1) The power of State Governments for borrowing money shall not extend to the
money, funds or revenue allocated to Local Government Councils from the Federation
Account and from the State concerned.

(2) The power of the Federal Capital Territory for borrowing money shall not extend
to the money, funds or revenue allocated to Area Councils from the Federation Account,
and from the Federal Capital Territory.

7. Limits of power to deduct or re-allocate any amount standing to the credit of
State Joint Local Government Account, etc.

(1) It shall be unlawful for any organ, authority or official of a State or the Federal
Capital Territory, however described or constituted, to alter, deduct or re-allocate funds
standing to the credit of the State Joint Local Government Account, or the Federal Capi-
tal Territory Joint Area Councils Account:

Provided always that nothing in this subsection shall prevent the House of Assem-
bly of a State, or the National Assembly, from prescribing by law the terms and manner
for distributing money standing to the credit of any of the Joint Accounts, as the case may
be, to the Local Government Councils in the State, or the Area Councils in the Federal
Capital Territory.

(2) In the case of any default in the allocation or distribution to any local government,
such amount shall be a first charge on the State's next allocation from the Federation Ac-
count and shall be credited to the affected local government.

(3) Any person who acts in contravention of the provisions of subsection (1) of this
section, commits an offence and is liable on conviction to a fine twice the amount altered,
deducted or re-allocated illegally, or imprisonment for a term of five years, or to both
such fine and imprisonment.

8. Report by the Accountant-General of the Federation

The Accountant-General of the Federation shall report to each House of the National
Assembly on a quarterly basis the payments made to each State under this Act and stating
whether or not the payments were correctly made under this Act.

9. Report by the Auditor-General for the Federation

The Auditor-General for the Federation shall following the end of each financial year
report to each House of the National Assembly, stating how the monies allocated to each
state for the benefit of the Local Government Councils within the State and the Area
Councils in the Federal Capital Territory were spent.

10. Short title

This Act may be cited as the Monitoring of Revenue Allocation to Local Governments Act, 2005.

                   SUBSIDIARY LEGISLATION

                                                                      No Subsidiary Legislation