The Economic and Financial Crimes Commission (EFCC) has begun examining the financial records and activities of Nigeria’s 774 local government councils to determine how effectively they have managed public resources since gaining financial autonomy.
The nationwide exercise covers councils across the 36 states and the Federal Capital Territory, with the commission deploying its zonal directorates to handle the investigation.
However, the probe comes amid growing expectations that direct access to statutory allocations would strengthen local administration, improve accountability and bring development closer to residents.
The commission is examining how council chairmen have utilised the funds received since the Supreme Court’s July 2024 judgment, which ended state governors’ control over local government allocations.
Beyond reviewing expenditure records, the investigation is expected to assess whether the councils have demonstrated the administrative capacity required to manage their finances independently.
The EFCC is also interested in the extent to which increased financial control has translated into visible improvements in local infrastructure, public services and other grassroots development initiatives.
The exercise places the financial decisions of council administrations under scrutiny, particularly their ability to justify public expenditure and demonstrate results from the resources entrusted to them.
Background
On July 11, 2024, the Supreme Court delivered a landmark judgment affirming the financial independence of Nigeria’s local government councils.
The court ruled against the practice of state governments controlling or withholding allocations meant for local councils and directed that such funds should go directly to the councils through the Office of the Accountant-General of the Federation.
The judgment followed a suit instituted by the Federal Government, which sought to end financial interference by state governments and strengthen democratically elected local administrations.
The decision was widely regarded as an opportunity to improve grassroots governance by giving local authorities greater control over their resources.
However, the EFCC’s latest action raises fresh questions about how councils have managed the financial responsibility that comes with autonomy. Although, the commission has yet to announce specific findings or identify any council chairman found culpable of financial misconduct.
