President Bola Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in monitoring Federation Account Allocation Committee (FAAC) funds allocated to Nigeria’s 36 states and 774 local government areas.
The reported initiative is aimed at strengthening accountability and ensuring public funds are used for their intended purposes amid concerns over the management of rising government revenues.
According to a report by BusinessDay, the proposed framework would involve tracking allocations, verifying projects funded with public money and investigating suspected diversion of funds and other financial irregularities.
The monitoring arrangement is also expected to involve relevant federal institutions, including the Office of the Accountant-General of the Federation, the Federal Ministry of Finance, the Central Bank of Nigeria and the Independent Corrupt Practices and Other Related Offences Commission.Nigeria political analysis
The report said the proposed measures would include examining questionable contracts, suspected ghost workers and complaints from citizens about the alleged misuse of public funds.
However, details of the framework, including its legal basis, implementation timetable and operational procedures, were not provided in the report.
The move comes amid growing scrutiny of how state and local governments spend their monthly allocations, particularly following the removal of the petrol subsidy and foreign exchange reforms, which have affected revenues available for distribution.
Despite increased allocations, many communities continue to face challenges involving poor infrastructure, inadequate healthcare facilities and limited access to essential public services.
The initiative also comes after the Supreme Court’s July 2024 judgment affirming the constitutional right of local governments to receive their allocations directly from the Federation Account.
The judgment was intended to strengthen local government financial autonomy and reduce state governments’ control over council funds.
If implemented as reported, the EFCC-led monitoring arrangement would place greater emphasis on how allocations are spent after disbursement, with suspected financial crimes potentially attracting investigation and prosecution under applicable laws.
