The Economic and Financial Crimes Commission is scrutinising the financial activities of chairmen of Nigeria’s 774 local government areas to determine how they have spent public funds since the councils secured financial autonomy.
The exercise is being conducted through the commission’s zonal offices and focuses on the accountability of council administrators, particularly in the management of statutory allocations received by their respective local governments.
EFCC sources familiar with the development said the investigation covered all 36 states and the Federal Capital Territory, adding that the process was being handled discreetly to establish whether the council bosses had properly managed the resources at their disposal.
According to the sources, the commission is also assessing whether the financial independence granted to the councils has improved service delivery, strengthened grassroots administration and stimulated economic activities in their communities.
One of the sources said the agency intended to evaluate the performance of the councils before and after the Supreme Court ruling to determine whether the new financial arrangement had produced tangible results.
The source said, “All the local governments across the country are being investigated. It is being done discreetly. We want to know whether they are accountable following the Supreme Court ruling granting them financial autonomy.
“We want to assess their impact on the economy, their managerial capacity and integrity. We also want to compare what existed before the autonomy with the situation now and determine whether there has been meaningful development.”
The EFCC’s action follows the Supreme Court’s July 11, 2024 judgment affirming the financial independence of the 774 local government areas and directing that their allocations be paid directly into their accounts rather than being controlled by state governments.
The ruling was delivered after the Federal Government approached the apex court in May 2024, seeking to end governors’ control over council funds and the replacement of elected local government administrations with unelected caretaker committees.
In October 2024, EFCC Chairman, Ola Olukoyede, had announced that the commission would track local government budget implementation and expenditure, stressing that officials found diverting funds or spending allocations outside approved purposes would be prosecuted.
Kehinde Ayanboade
Kehinde Ayanboade is the Managing Editor and Publisher of Naija Metro News, with over eight years of experience covering Nigerian politics, crime, legislative proceedings and metropolitan affairs.
