President Bola Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in monitoring allocations from the Federation Account Allocation Committee (FAAC) to the 36 states and 774 local government areas.
The arrangement is intended to strengthen accountability in the management of public funds.
It would place greater scrutiny on how subnational governments use monthly allocations, which have increased following the removal of the petrol subsidy and foreign exchange reforms.
Tracking Funds From Source to Destination
Under the proposed framework, the EFCC would monitor the release and utilisation of FAAC allocations, with attention to suspected diversion of funds, questionable contracts, ghost workers and other financial irregularities.
The commission would work with the Office of the Accountant-General of the Federation, the Ministry of Finance, the Central Bank of Nigeria and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The measures include tracking allocations from source to destination, verifying projects reportedly financed with public funds, investigating citizens’ complaints and publishing periodic compliance reports.
However, details of the operational framework, including its legal basis, scope and implementation timetable, were not provided in the material available.
Revenue Up, Services Still Poor
The decision comes as states and local governments receive substantial transfers from the federation account, increasing pressure on officials to show how funds are spent.
Despite higher allocations, concerns persist about unpaid salaries and pensions, poor road infrastructure, inadequate healthcare facilities and limited delivery of essential services in many communities.
The gap between revenue inflows and development outcomes has intensified calls for stronger financial controls and greater transparency.
“FAAC money is not free money. It is money for the people, and it must work for the people,” the document announcing the initiative said.
The initiative builds on the Supreme Court’s July 2024 judgment affirming the constitutional right of local governments to receive allocations directly from the Federation Account.
No One Will Be Spared
The EFCC has been directed to conduct its work professionally and without political bias.
Officials found to have misappropriated public funds could face investigation and prosecution under applicable laws.
“No one will be spared, irrespective of party affiliation,” the statement said.
The framework is also expected to provide a channel for citizens to report suspected diversion or misuse of allocations.
The Presidency is expected to provide further details on the monitoring arrangements and the responsibilities of the participating agencies.
