President Bola Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in tracking Federation Account allocations to Nigeria's 36 states and 774 local government areas. This move aims to strengthen oversight of public spending and ensure that funds are used for their intended purposes. The initiative comes amid scrutiny of public spending following increased FAAC allocations and the Supreme Court's 2024 judgment on local government financial autonomy.
The proposed framework will cover project verification, questionable contracts, suspected ghost workers, and alleged diversion of public funds. The Accountant-General of the Federation, Finance Ministry, Central Bank of Nigeria, and ICPC are expected to participate in the monitoring arrangement. This collaboration will bring together institutions with responsibilities relating to public finance administration, financial records, banking transactions, and the investigation of corruption-related offences.
The EFCC will work with relevant federal institutions to track public funds, examine financial records, and identify possible irregularities in the use of allocations by state and local governments. The initiative would involve monitoring allocations distributed through the Federation Account Allocation Committee (FAAC), verifying projects financed with public funds, and investigating suspected diversion of money and other financial irregularities.
The proposed monitoring arrangement is expected to cover the verification of projects funded with public money, the examination of questionable contracts, and investigations into suspected ghost workers and other forms of financial irregularities. Complaints from citizens concerning the alleged misuse of public funds are also expected to be examined under the framework. This will place greater emphasis on how allocations are utilised after disbursement.
Where evidence of wrongdoing is established, suspected offenders could face prosecution in accordance with applicable laws. The EFCC will investigate suspected financial crimes within its statutory mandate. The involvement of other institutions, such as the Office of the Accountant-General of the Federation and the Federal Ministry of Finance, will contribute to efforts to improve the tracking of public revenue and identify possible breaches in the management of government funds.
The initiative comes amid growing scrutiny of how state and local governments manage their monthly allocations, particularly following policy changes that have affected government revenues and increased the resources available for distribution among the three tiers of government. This move is expected to ensure that funds are used for their intended purposes and that public spending is transparent and accountable.
The collaboration between the EFCC and other federal institutions will help to promote transparency and accountability in public spending. It will also help to identify and address financial irregularities and ensure that public funds are used for the benefit of Nigerians. The EFCC's involvement in tracking FAAC allocations is a significant step towards ensuring that public funds are managed efficiently and effectively.
Key points
- President Bola Tinubu has directed the EFCC to monitor Federation Account allocations to Nigeria's 36 states and 774 local government areas.
- The proposed framework will cover project verification, questionable contracts, suspected ghost workers, and alleged diversion of public funds.
- The initiative aims to strengthen oversight of public spending and ensure that funds are used for their intended purposes.
