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, in a move aimed at strengthening accountability in the management of public funds. OBSERVERS TIMES report
The proposed arrangement places greater scrutiny on how subnational governments utilize monthly allocations from the federation account, which have increased significantly following the removal of the petrol subsidy and foreign exchange reforms.
The development comes amid persistent concerns over whether rising government revenues are translating into better public services, infrastructure, and improved living standards across the country.
Under the proposed framework, the EFCC will monitor the release and utilization of FAAC allocations, with particular attention paid to the suspected diversion of funds, questionable contracts, ghost workers, and other financial irregularities.
According to the statement announcing the approval, 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 (CBN), and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The proposed measures include tracking allocations from source to destination, verifying projects reportedly financed with public funds, investigating citizen complaints regarding the alleged misuse of allocations, and publishing periodic compliance reports.
However, specific details of the operational framework—including its legal basis, scope, and implementation timetable—were not provided in the material made available at this press times.
The reported decision comes as states and local governments receive substantial transfers from the federation account, increasing pressure on public officials to demonstrate transparency in their spending.
Despite higher allocations, concerns persist regarding unpaid salaries and pensions, poor road infrastructure, inadequate healthcare facilities, and limited delivery of essential services in many communities.
