President Bola Tinubu has reportedly approved a plan to involve the Economic and Financial Crimes Commission (EFCC) in monitoring government allocations across Nigeria.
The move could bring greater attention to how public money is spent by state and local governments.
The proposed arrangement would cover allocations to all 36 states and 774 local government areas.
However, the big question remains whether increased monitoring will improve public services and ensure Nigerians benefit from government revenue.
According to a report by BusinessDay, the plan would involve tracking Federation Account Allocation Committee (FAAC) funds and checking projects financed with public money.
It would also allow authorities to investigate suspected cases of fund diversion and other financial irregularities.
The proposed framework is expected to involve other federal institutions, including the Office of the Accountant-General of the Federation, the Federal Ministry of Finance, the Central Bank of Nigeria and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
The reported measures could include reviewing questionable contracts, checking for ghost workers and responding to public complaints about the alleged misuse of government funds.
However, the report did not provide full details about the plan’s legal basis, implementation date or how the monitoring would work.
The development comes as Nigerians demand better results from government spending.
State and local government allocations have drawn increased attention following the removal of the petrol subsidy and foreign exchange reforms.
Although government revenue has increased, many communities still struggle with poor roads, weak healthcare facilities and limited access to basic services.
The proposed EFCC monitoring of FAAC allocations could therefore place more pressure on public officials to explain how they spend the money available to their governments.
The plan also follows the Supreme Court’s July 2024 judgment affirming local governments’ constitutional right to receive allocations directly from the Federation Account.
The ruling aimed to strengthen local government financial autonomy and reduce state governments’ control over council funds.
If implemented, the proposed monitoring arrangement could lead to closer scrutiny of spending after allocations are released.
