By Jelili Gbadamosi
The Economic and Financial Crimes Commission, EFCC, has launched a nationwide investigation into the financial activities of the 774 local government chairmen to determine how they have utilised public funds since gaining financial autonomy.
The investigation, according to sources within the commission, covers all 36 states and the Federal Capital Territory, with EFCC zonal directorates handling the exercise discreetly.
The anti-graft agency is particularly examining the management of council allocations, accountability of elected officials and the impact of financial autonomy on development at the grassroots.
An EFCC source said the commission was interested in determining whether local government chairmen had demonstrated the capacity and integrity required to manage public resources independently.
“We want to see their definite impact on the economy as a result of the financial autonomy that has been granted them. We want to see whether they have the necessary managerial skills, and whether their integrity quotient is high,” the source said.
The source added that the commission was comparing the performance of local governments before and after the implementation of financial autonomy to establish whether the new arrangement had resulted in meaningful development.
An official of a state Ministry of Local Government also confirmed that EFCC was investigating all local government chairmen in the state over their spending.
The investigation comes more than two years after the Supreme Court, on July 11, 2024, granted financial autonomy to the 774 local government councils.
The judgment followed a suit filed by the Federal Government against the 36 state governors over their control of local government allocations.
The apex court declared it unconstitutional for state governors to withhold or control funds allocated to democratically elected local government councils.
The seven-member panel, led by Justice Garba Lawal, also ordered the Accountant-General of the Federation to pay allocations directly into the accounts of the local governments.
The ruling was expected to strengthen grassroots administration by enabling councils to manage their finances independently and execute development projects without interference from state governments.
However, concerns over the accountability of local government officials prompted the EFCC to announce plans to monitor their financial activities.
In October 2024, EFCC Chairman, Ola Olukoyede, said the commission would monitor the budget performance of local governments to ensure that allocations were spent on approved projects and programmes.
Olukoyede explained that the agency would work with relevant stakeholders to track expenditure and prosecute officials found guilty of financial misconduct.
He also identified the establishment of additional zonal directorates as part of efforts to strengthen the commission’s monitoring capacity across the country.
“We are fully prepared to ensure accountability in the use of local government funds,” he said.
Meanwhile, efforts to obtain an official reaction from the EFCC spokesperson, Dele Oyewale, were unsuccessful as of Monday night.
