EFCC Begins Nationwide Audit Of 774 LG Councils

The Economic and Financial Crimes Commission has commenced a nationwide investigation into the management of public funds by chairmen of Nigeria’s 774 local government areas following the Supreme Court judgment granting councils financial autonomy.

The investigation is aimed at determining how local government officials have managed their allocations and whether the financial independence granted to the councils has translated into improved development at the grassroots.

The exercise, according to reports, is being coordinated by the EFCC’s zonal directorates across the 36 states and the Federal Capital Territory.

Sources within the commission disclosed that the investigation is being conducted discreetly, with particular attention on the spending patterns of the council chairmen, their ability to manage public resources and their accountability to residents.

The commission is also examining whether the councils have recorded measurable improvements in service delivery since they began receiving their allocations independently.

An official of a state Ministry of Local Government reportedly confirmed that chairmen in the state were being investigated over their expenditure.

The nationwide exercise is not limited to any particular state, as EFCC sources said all its zonal offices had been directed to participate.

The investigation comes more than two years after the Supreme Court delivered a landmark judgment on July 11, 2024, affirming the financial autonomy of local governments.

The judgment followed a suit instituted by the Federal Government through the Attorney-General of the Federation, Lateef Fagbemi, challenging the control of local government funds by state governors.

The Federal Government had argued that governors should not dissolve democratically elected councils, replace them with caretaker committees or control allocations meant for local governments.

In its ruling, the Supreme Court declared it unconstitutional for state governors to control or withhold funds allocated to local government councils.

The seven-member panel, led by Justice Garba Lawal, also directed the Accountant-General of the Federation to pay allocations directly into the accounts of the councils.

The decision was expected to strengthen grassroots administration by allowing local governments to independently manage their finances and execute projects based on the needs of their communities.

However, concerns over accountability and the actual use of the funds have continued to raise questions about the benefits of the autonomy.

In October 2024, EFCC Chairman, Ola Olukoyede, announced that the commission would monitor local government budget performance to ensure that public funds were spent on approved projects and programmes.

He said the agency would work with relevant stakeholders to track expenditure and ensure that officials found to have violated financial regulations were brought to justice.

Olukoyede also identified the expansion of the commission’s zonal directorates as part of efforts to improve its ability to monitor public funds across the country.

The latest investigation is expected to provide a clearer picture of how local government allocations have been managed since the Supreme Court ruling.

As of the time of reporting, the EFCC had not publicly disclosed specific findings or announced any arrests arising from the ongoing exercise.

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