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 Nigeria's 36 states and 774 local government areas. This move aims to strengthen accountability in the management of public funds. The proposed arrangement will place greater scrutiny on how subnational governments use monthly allocations from the federation account.
The development comes amid concerns about whether rising government revenues are translating into better public services, infrastructure, and improved living standards across the country. Following the removal of the petrol subsidy and foreign exchange reforms, allocations have increased. However, there are persistent concerns about unpaid salaries and pensions, poor road infrastructure, inadequate healthcare facilities, and limited delivery of essential services in many communities.
Under the proposed framework, the EFCC will monitor the release and utilisation of FAAC allocations, focusing on suspected diversion of funds, questionable contracts, ghost workers, and other financial irregularities. The commission will work with relevant federal institutions, including 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.
The proposed measures include tracking allocations from source to destination, verifying projects reportedly financed with public funds, investigating citizens' complaints about alleged misuse of allocations, and publishing periodic compliance reports. The EFCC monitoring initiative will extend the focus on accountability to the use of funds after disbursement, rather than concentrating solely on the release of allocations.
Tinubu's administration has also backed greater financial autonomy for local governments following 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 aims to reduce state governments' control over local government finances and strengthen the ability of councils to deliver services at the grassroots.
The EFCC has been directed to conduct its work professionally and without political bias, with officials found to have misappropriated public funds potentially facing investigation and prosecution under applicable laws. The proposed framework is 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 reported initiative, including the monitoring arrangements and responsibilities of the participating agencies. The initiative's objective is to ensure that allocations intended for development are used for the benefit of citizens rather than diverted or mismanaged.
Key points
- President Tinubu has ordered the EFCC to monitor FAAC allocations to ensure accountability in public fund management.
- The EFCC will work with relevant federal institutions to track allocations and verify projects financed with public funds.
- The initiative aims to provide a channel for citizens to report suspected diversion or misuse of allocations.
