President Bola Tinubu has approved a proposed monitoring arrangement involving the Economic and Financial Crimes Commission (EFCC) to track the use of Federation Account Allocation Committee (FAAC) funds by Nigeria’s 36 states and 774 local government areas.
The initiative is aimed at strengthening accountability in the management of public funds amid growing concerns that increased monthly allocations are not translating into commensurate improvements in infrastructure and essential services.
Under the proposed framework, the EFCC would scrutinise the utilisation of allocations, investigate suspected diversion of funds, examine questionable contracts and probe alleged irregularities involving ghost workers and public expenditure.
The arrangement would extend financial scrutiny beyond the disbursement of funds to how the money is spent by state and local governments.
According to the report published by BusinessDay on Wednesday, the proposed monitoring framework would involve collaboration between the EFCC and relevant federal institutions, including the Office of the Accountant-General of the Federation, the Federal Ministry of Finance, the Central Bank of Nigeria and the Independent Corrupt Practices and Other Related Offences Commission.
The measures outlined include tracking allocations from source to destination, verifying projects reportedly funded with public money, investigating complaints from citizens and publishing periodic compliance reports.
The development comes against the backdrop of increased FAAC disbursements following the removal of the petrol subsidy and foreign exchange reforms, with questions persisting over the impact of higher revenues on living conditions across the country.
Despite the improved inflows, many communities continue to face concerns over road infrastructure, healthcare delivery, unpaid salaries and pensions, and other basic services.
The initiative is also expected to strengthen public oversight by providing a channel through which citizens can report suspected misuse of allocations. However, the procedures for submitting complaints and the operational details of the monitoring system have not been fully disclosed.
Tinubu’s administration has also backed financial autonomy for local governments following the Supreme Court’s July 2024 judgment affirming their constitutional right to receive allocations directly from the Federation Account.
The proposed EFCC arrangement would focus on accountability after the funds have been disbursed, complementing efforts to strengthen the financial independence of local councils and improve grassroots service delivery.
The material announcing the initiative said the commission would be expected to carry out its duties professionally and without political bias, with suspected cases of financial misconduct investigated under applicable laws.
However, details of the framework’s legal basis, implementation timetable and precise division of responsibilities among the participating agencies remain unclear.
The effectiveness of the initiative will depend on how transparently and consistently the monitoring process is implemented, as well as whether investigations lead to appropriate action against established cases of financial misconduct
