Tinubu Directs EFCC to Monitor FAAC Allocations to States, LGAs

Tinubu Directs EFCC to Monitor FAAC Allocations to States, LGAs

President Bola Ahmed Tinubu has reportedly directed the Economic and Financial Crimes Commission (EFCC) to monitor allocations from the Federation Account Allocation Committee (FAAC) to Nigeria’s 36 states and 774 local government areas.

According to OBSERVERS TIMES, the directive is aimed at strengthening transparency and accountability in the management of public funds and ensuring that allocations received by state and local governments are properly utilised.

The new arrangement is expected to increase scrutiny of how subnational governments manage their monthly allocations from the Federation Account, particularly following the removal of the petrol subsidy and the implementation of foreign exchange reforms, which have contributed to changes in revenue distributions among the three tiers of government.

FAAC allocations represent a major source of revenue for state governments and local government councils, helping them finance public infrastructure, healthcare, education, road construction, sanitation and other essential services. Effective monitoring of these funds is therefore considered important to ensuring that government spending translates into tangible benefits for citizens.

Under the reported directive, the EFCC is expected to play a greater role in monitoring the management of public funds and identifying potential cases of financial misconduct involving allocations received by state and local governments.

The development could also increase pressure on public officials to maintain proper financial records, demonstrate accountability in public expenditure and ensure that funds meant for development projects are not diverted for personal or other unauthorised purposes.

The effectiveness of the arrangement will ultimately depend on its implementation, the transparency of government spending and the ability of relevant institutions to ensure that public funds are used for the benefit of Nigerians.