The Economic and Financial Crimes Commission (EFCC) has commenced efforts to monitor Federation Account Allocation Committee (FAAC) releases to state and local governments as part of a strategy to prevent the diversion of public funds.
EFCC Chairman, Ola Olukoyede, disclosed this on Thursday while speaking at the commissioning of the commission’s new Zonal Directorate in Awka, Anambra State.
Olukoyede said President Bola Ahmed Tinubu had approved the monitoring of FAAC releases to states and local governments, describing the move as part of the commission’s shift towards preventing financial crimes before they occur.
“Mr President has graciously approved for us to also monitor FAAC releases to states and to local government,” Olukoyede said.
According to the EFCC chairman, the commission is moving beyond its traditional focus on investigating financial crimes and recovering funds after alleged diversion to identifying weaknesses in government financial systems that could facilitate fraud.
He said the commission’s Department of Fraud Risk Assessment and Control had begun examining financial releases to government ministries, departments and agencies and tracing how public resources were utilised.
Olukoyede said the same preventive approach would now be extended to funds allocated to states and local governments through FAAC.
He explained that the objective was to identify vulnerabilities in the management of public funds and strengthen controls before resources could be diverted.
The EFCC chairman said the commission’s experience had shown that recovering funds after they had been stolen was costly and could result in only part of the money being recovered.
The development comes amid increased attention to the management of public resources at the sub-national level. In September, the EFCC also urged local government chairpersons to ensure that increased allocations to councils translate into improved services for residents.
FAAC allocations remain a major source of revenue for Nigeria’s three tiers of government. In September 2026, the Federal Government, states and local governments shared allocations from federally collected revenue, with states receiving N794.313 billion and local governments N555.142 billion from the distributable amount reported for that month.
Olukoyede said the EFCC would continue to combine enforcement with preventive measures to strengthen accountability and reduce opportunities for financial crimes.
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