LG autonomy: EFCC probes 774 chairmen over spending

The Economic and Financial Crimes Commission (EFCC) is investigating all 774 local government chairmen across Nigeria over their management of public funds following the councils’ financial autonomy, with the probe focusing on accountability, spending and grassroots development.

The investigation, being conducted discreetly by the commission’s zonal directorates across the 36 states and the Federal Capital Territory, is aimed at determining whether the chairmen have properly managed allocations received by their councils.

Sources within the EFCC said the commission was also assessing the chairmen’s managerial competence, integrity and the impact of financial autonomy on service delivery at the grassroots.

One of the sources said the investigation was not limited to any particular state but covered all local government areas in the country.

“All the local governments across the country are being investigated. It’s discreetly being done. You know the Supreme Court ruling granted them financial autonomy. We want to know whether they are accountable,” the source said.

The source added that the commission was interested in establishing whether the councils had recorded measurable improvements in development since gaining financial independence from state governments.

“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.

“We want to see comparatively what was existing before the autonomy and what is existing now and whether there has been development. It is not about the state you mentioned alone; it is across the country. All the EFCC zonal offices are handling the investigation secretly,” the source added.

An official of a state Ministry of Local Government had also confirmed the development, saying all council chairmen in the state were being investigated over their expenditure.

The probe comes more than two years after the Supreme Court affirmed the financial autonomy of the 774 local government areas and barred state governors from controlling or withholding their allocations.

In May 2024, the Federal Government, through the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, instituted a suit at the Supreme Court challenging governors’ control of local government funds.

The suit sought to prevent governors from dissolving democratically elected councils and replacing them with caretaker committees, as well as stopping them from receiving or withholding allocations meant for the councils.

On July 11, 2024, the Supreme Court ruled in favour of local government financial autonomy, declaring it unconstitutional for governors to control or withhold funds allocated to the councils.

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

The judgment was expected to strengthen grassroots governance by allowing elected council officials to independently manage their finances and execute development projects.

However, concerns over accountability prompted the EFCC to announce plans to monitor the councils’ expenditure.

In October 2024, EFCC Chairman, Ola Olukoyede, said the commission would track the budget performance of local governments to ensure that allocations were spent on approved projects and programmes.

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Olukoyede, in an interview published in the commission’s magazine, said the EFCC would work with relevant stakeholders to monitor expenditure and prosecute officials found to have violated the law.

He said the establishment of additional zonal directorates was intended to strengthen the commission’s presence and improve its capacity to monitor public funds nationwide.

“We are fully prepared to ensure accountability in the use of local government funds. One of the reasons that informed the decision to establish additional zonal directorates by the commission is the need to improve the commission’s presence and coverage of the country.

“We’ll work closely with stakeholders in tracking the budget performance of the councils, to ensure that funds appropriated are used for specified purposes and those who violate the law will be brought to justice,” he said.

Efforts to reach the EFCC spokesman, Dele Oyewale, for comments were unsuccessful as of Monday night.