EFCC Gets Presidential Nod to Track How States, LGs Spend FAAC Allocations
By Reporter
The Economic and Financial Crimes Commission (EFCC) has secured presidential approval to monitor Federation Account Allocation Committee (FAAC) releases to state and local governments as part of a new strategy to prevent the diversion of public funds.
EFCC Chairman, Ola Olukoyede, disclosed this on Thursday while speaking at the commissioning of the commission’s new Zonal Directorate in Awka, Anambra State.
Olukoyede said the commission was moving beyond its traditional emphasis on investigating financial crimes after they had occurred, towards preventing the diversion of public resources in the first place.
According to him, the EFCC is now making efforts to track FAAC allocations to the sub-national governments and examine how the funds are utilised.
The development comes amid a sharp increase in allocations to states and local government councils following economic reforms, particularly the removal of fuel subsidy and changes in the foreign-exchange regime.
In August 2026, FAAC shared N2.338 trillion among the Federal Government, states and the 774 local government councils. States received N794.313 billion, while local governments received N555.142 billion.
The Federal Government had earlier announced plans for a central transparency portal through which Nigerians would be able to track allocations, budgets, development plans and audited accounts of the 774 local governments.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the proposed platform was intended to connect public allocations with actual projects and services delivered at the grassroots.
The EFCC initiative also comes against the backdrop of continuing concerns over local government financial autonomy. The Supreme Court ruled in July 2024 that allocations standing to the credit of local governments should be paid directly to democratically elected councils.
A 2026 analysis of disbursements to the 36 states and 772 LGAs, sighted by Midwest Herald show that local governments were allocated N10.479 trillion between July 2024 and June 2026, while questions remained over the implementation of the court’s financial-autonomy judgment.
With substantially larger revenues now flowing to the sub-national governments, the EFCC’s proposed monitoring is expected to place greater emphasis on the trail from FAAC allocation to expenditure and ultimately to projects and services delivered to citizens.
