Tinubu Approves EFCC Monitoring of FAAC Allocations to States, LGs

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.

The move is aimed at strengthening accountability and preventing the diversion or misuse of public funds by subnational governments.

EFCC Chairman, Ola Olukoyede, disclosed the presidential approval while speaking at the commissioning of the commission’s new zonal directorate in Awka, Anambra State.

Olukoyede said the commission would extend its financial monitoring activities to allocations received by state and local governments, as part of a broader shift towards preventing financial crimes rather than relying solely on investigations and recovery after funds have been misappropriated.

He explained that the commission was adopting a preventive approach to identify weaknesses in public financial management and address opportunities for fraud before government resources were diverted.

According to him, the EFCC has established a Department of Fraud Risk Assessment and Control to examine financial releases and assess how public funds are utilised.

The chairman said the strategy would also involve monitoring government projects, examining vulnerable areas of public revenue and encouraging citizens to report suspected financial irregularities.

The development comes amid growing scrutiny of how states and local governments utilise their monthly FAAC allocations, particularly following increased federation revenue from changes in fuel subsidy and foreign exchange policies.

The proposed monitoring framework is expected to involve cooperation 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.

However, details of the operational arrangements, including the legal framework and implementation procedures, have not been fully disclosed.

The move also follows the Supreme Court’s July 2024 judgment affirming the financial autonomy of local governments and directing that their allocations be paid directly from the Federation Account.

The EFCC says its expanded monitoring role is intended to ensure that public funds are properly accounted for and used to deliver services and development projects.