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Tinubu Tightens Grip on Public Spending, Directs EFCC to Track FAAC Allocations to States, LGs
Tinubu Tightens Grip on Public Spending, Directs EFCC to Track FAAC Allocations to States, LGs
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 Accountant-General of the Federation, Finance Ministry, Central Bank of Nigeria and ICPC are expected to participate in the monitoring arrangement.
The initiative comes amid scrutiny of public spending following increased FAAC allocations and the Supreme Court’s 2024 judgment on local government financial autonomy.
October 30, () – 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, in a move aimed at strengthening oversight of public spending and ensuring that funds are used for their intended purposes.
According to a report by BusinessDay, 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 move 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.
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Under the proposed arrangement, the EFCC would 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.
EFCC to Track Projects, Questionable Contracts
Channel
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.
The initiative would place greater emphasis on how allocations are utilised after disbursement, with the EFCC expected to investigate suspected financial crimes within its statutory mandate.
Where evidence of wrongdoing is established, suspected offenders could face prosecution in accordance with applicable laws.
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Federal Agencies to Collaborate
The Central Bank of Nigerias headquarters in Abuja Source GodwinPaya Wikimedia Commons
Other institutions expected to participate in the proposed arrangement include 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 agencies are expected to contribute to efforts to improve the tracking of public revenue, examine financial transactions and identify possible breaches in the management of government funds.
Their involvement would bring together institutions with responsibilities relating to public finance administration, financial records, banking transactions and the investigation of corruption-related offences.
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