President Bola Tinubu has approved the involvement of the Economic and Financial Crimes Commission (EFCC) in monitoring allocations distributed by the Federation Account Allocation Committee (FAAC) to Nigeria’s 36 states and 774 local government areas, as part of efforts to strengthen transparency, prevent diversion of public funds and ensure that government revenues are used for the benefit of citizens.
The initiative, announced on Wednesday, October 28, 2026, is intended to strengthen oversight of how state and local governments utilise their monthly allocations from the Federation Account, particularly following increased revenue distributions resulting from the removal of petrol subsidy and foreign exchange reforms.
Under the proposed arrangement, the EFCC will monitor the release, movement and utilisation of FAAC allocations, with particular attention to suspected diversion of funds, questionable contracts, ghost workers and other financial irregularities that could undermine development at the state and local government levels.
The commission is expected to collaborate with relevant federal institutions, including the Office of the Accountant-General of the Federation, the Federal Ministry of Finance, the Central Bank of Nigeria (CBN) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The proposed monitoring framework will involve tracking allocations from their source to the receiving governments, verifying projects financed with public funds, investigating complaints from citizens concerning alleged financial misconduct and publishing periodic reports on compliance with financial accountability requirements.
The development comes amid growing public concerns over whether increased federal allocations to states and local governments are translating into improved infrastructure, healthcare, education, payment of salaries and pensions, and the provision of other essential public services.
Despite higher revenue distributions, many communities continue to experience deteriorating roads, inadequate healthcare facilities, poor public infrastructure and difficulties accessing basic services.
Concerns have also persisted over unpaid salaries and pensions in some parts of the country, raising questions about how funds received by subnational governments are managed and whether public expenditure reflects the needs of citizens.
The administration’s proposed intervention is aimed at strengthening accountability beyond the disbursement of allocations by examining how the funds are subsequently spent.
A statement announcing the initiative emphasised that allocations from the Federation Account are public resources intended to improve the welfare of Nigerians.
“FAAC money is not free money. It is money for the people, and it must work for the people,” the statement declared.
The monitoring arrangement is expected to place greater scrutiny on government expenditure, particularly contracts awarded for public projects, payments made to contractors and the management of personnel costs.
It will also examine allegations involving ghost workers, inflated contracts, diversion of funds and projects for which payments may have been made without corresponding execution.
Where financial irregularities are established, the EFCC is expected to investigate the individuals and institutions involved and pursue appropriate legal action in accordance with applicable laws.
The commission has also been directed to discharge its responsibilities professionally and without political bias.
According to the statement, public officials found to have misappropriated government funds could face investigation and prosecution regardless of their political affiliations.
“No one will be spared, irrespective of party affiliation,” the statement added.
The proposed initiative also provides for greater public participation in financial accountability by creating opportunities for citizens to report suspected diversion or misuse of allocations received by their state and local governments.
However, the procedures for submitting complaints, the mechanisms for investigating allegations and the process for resolving reported irregularities have not yet been disclosed.
The development follows the Tinubu administration’s support for financial autonomy for local governments, particularly after the Supreme Court’s July 2024 judgment affirming the constitutional right of local government councils to receive allocations directly from the Federation Account.
The landmark judgment was intended to reduce the control exercised by state governments over local government finances and strengthen the capacity of councils to discharge their constitutional and statutory responsibilities.
The decision also sought to address longstanding concerns about the operation of State Joint Local Government Accounts and the withholding or diversion of funds intended for local government administration.
However, the effectiveness of financial autonomy depends not only on the direct release of allocations but also on transparent expenditure, effective financial management and accountability at the grassroots.
The proposed EFCC monitoring framework is therefore intended to complement the direct allocation policy by ensuring that funds reaching local government councils are properly accounted for and used for approved public purposes.
The initiative also comes at a time when increased FAAC distributions have intensified public demands for state governors and local government chairmen to demonstrate measurable improvements in service delivery.
With more resources available to subnational governments, attention has increasingly shifted from the amounts received to how those resources are utilised and whether they produce tangible development outcomes.
The proposed monitoring arrangement is expected to strengthen financial controls, improve transparency in public expenditure and discourage the diversion of resources meant for infrastructure and social services.
Nevertheless, important details concerning the initiative remain unclear, including its precise legal framework, the scope of the EFCC’s monitoring responsibilities and how the commission will coordinate with existing financial oversight institutions.
The implementation timetable, reporting requirements and mechanisms for ensuring that monitoring activities respect the constitutional responsibilities of state and local governments have also not been specified.
Although the EFCC has statutory powers to investigate economic and financial crimes, the extent of its involvement in routine monitoring of subnational allocations will depend on the legal and operational arrangements eventually adopted.
The proposed framework would also need to distinguish between legitimate financial oversight and the constitutional responsibilities of state and local governments in determining and implementing their expenditure priorities.
The Presidency is expected to provide further clarification on the initiative, including the responsibilities of participating agencies, monitoring procedures and measures for ensuring transparency and impartial enforcement.
Post Title: “FAAC Money Is Not Free Money, It Must Work For The People” — Tinubu Approves EFCC Monitoring Of Allocations To 36 States, 774 LGAs By Naijaonpoint.