President Bola Ahmed Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in monitoring allocations from the Federation Account Allocation Committee (FAAC) to Nigeria’s 36 states and 774 local government areas.
The initiative is aimed at strengthening transparency and accountability in the management of public funds and ensuring that allocations received by state and local governments are properly utilised for the benefit of citizens.
The EFCC Chairman, Ola Olukoyede, had earlier disclosed the presidential approval while speaking at the commissioning of the commission’s new zonal directorate in Awka, Anambra State.
Olukoyede said the commission was expanding its anti-corruption strategy beyond investigating financial crimes after they had occurred to preventing the diversion of public resources.
According to him, the new responsibility would enable the commission to monitor FAAC releases to state and local governments and identify possible financial irregularities before public funds are misappropriated.
Under the proposed arrangement, the EFCC is expected to work with relevant government institutions, including the Office of the Accountant-General of the Federation, the Federal Ministry of Finance, the Central Bank of Nigeria (CBN) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The proposed monitoring framework will focus on tracking allocations from their source to their destinations, verifying projects reportedly financed with public funds and investigating complaints from citizens over the alleged misuse of government resources.
It will also pay attention to suspected diversion of funds, questionable contract awards, inflated project costs, ghost workers and other financial irregularities.
The development comes amid increasing public demands for greater accountability in the management of government revenues, particularly as monthly FAAC allocations to the three tiers of government have increased following the removal of petrol subsidy and foreign exchange reforms.
Despite the increased revenue available to state and local governments, concerns persist over unpaid salaries and pensions, deteriorating road infrastructure, inadequate healthcare facilities and the poor delivery of essential public services in several communities.
The initiative is expected to place greater scrutiny on how subnational governments utilise their monthly allocations and whether public spending translates into measurable development outcomes.
The move also follows the Supreme Court’s landmark July 2024 judgment affirming the financial autonomy of local governments and directing that allocations due to councils be paid directly to them from the Federation Account.
The judgment was intended to strengthen grassroots administration by reducing state governments’ control over local government finances.
With the proposed EFCC monitoring arrangement, attention is expected to shift beyond the release of funds to how the money is subsequently spent.
Officials found to have diverted or misappropriated public resources could face investigation and prosecution in accordance with existing laws.
The commission is also expected to discharge its responsibilities professionally and without political considerations, ensuring that allegations of financial misconduct are treated on their merits.
However, details of the operational framework, including its legal basis, implementation timetable, reporting requirements and the precise responsibilities of participating agencies, are yet to be fully disclosed.
The Presidency is expected to provide further clarification on the monitoring arrangement in the coming days.
The initiative has renewed discussions around financial accountability at the subnational level, with calls for governors and local government chairmen to demonstrate how allocations received from the Federation Account are improving the lives of Nigerians.
FAAC allocations are public resources meant for public development, and their management is expected to reflect the needs and interests of citizens.
