Tinubu Directs EFCC to Monitor FAAC Allocations to States, 774 LGs

By Reporter

President Bola Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in monitoring the disbursement and utilisation of funds allocated to Nigeria’s 36 states and 774 local government areas from the Federation Account.

The initiative is aimed at strengthening accountability, promoting transparency and ensuring that public funds are deployed for the benefit of citizens.

Under the proposed arrangement, the EFCC will scrutinise how state and local governments utilise their monthly allocations from the Federation Account Allocation Committee (FAAC), which have increased following the removal of petrol subsidy and foreign exchange reforms.

The move comes amid growing concerns over the extent to which increased federal allocations are translating into improved infrastructure, public services and better living conditions for Nigerians.

The monitoring framework is expected to focus on detecting alleged diversion of public funds, questionable contract awards, ghost workers and other financial irregularities associated with the management of government revenue.

According to the document announcing the initiative, the EFCC will collaborate with relevant federal 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 measures include tracking allocations from their point of release to their final destinations, verifying projects reportedly funded with public money, investigating citizens’ complaints about alleged financial misconduct and publishing periodic compliance reports.

The document, however, did not provide details of the operational framework, legal provisions governing the exercise or the proposed implementation timetable.

The development comes at a time when state and local governments are receiving substantial monthly allocations from the Federation Account, raising expectations that increased revenue should translate into visible development across the country.

Despite the improved revenue inflows, many communities continue to grapple with poor road networks, inadequate healthcare facilities, unpaid salaries and pensions, and limited access to essential public services.

The disparity between increased government revenue and development outcomes has continued to generate calls for stricter financial controls and greater transparency in the management of public funds at the subnational level.

The document stated that the objective of the initiative was to ensure that allocations meant for development were not diverted or mismanaged but used to improve the welfare of citizens.

“FAAC money is not free money. It is money for the people, and it must work for the people,” the statement declared.

Tinubu’s administration has also supported greater financial autonomy for local governments following the Supreme Court’s landmark judgment of July 2024, which affirmed that local government councils are constitutionally entitled to receive their allocations directly from the Federation Account.

The judgment was intended to reduce state governments’ control over local government finances and strengthen the capacity of councils to deliver essential services at the grassroots.

However, the effectiveness of direct allocations depends largely on transparent financial administration, functional local government institutions and effective mechanisms for ensuring that public funds are spent on approved projects and priorities.

The proposed EFCC monitoring arrangement is therefore expected to extend accountability beyond the disbursement of funds to include scrutiny of how the money is utilised after reaching the respective state and local government accounts.

The commission is reportedly expected to carry out the assignment professionally and without political considerations, with public officials suspected of misappropriating funds liable to investigation and prosecution in accordance with existing laws.

“No one will be spared, irrespective of party affiliation,” the statement added.

The framework is also expected to provide an avenue for citizens to report suspected diversion and misuse of public allocations, although details of the complaint mechanism and procedures for investigating such reports are yet to be made public.

The Presidency is expected to provide further clarification on the initiative, particularly its legal framework, implementation arrangements and the respective responsibilities of the participating agencies.