The President gave the approval as part of efforts to stop corruption and ensure that public funds are used for what they are meant for.
For long, Nigerians have been complaining that despite the huge amount of money shared by FAAC every month, there is little to show at the state and local government levels in terms of development. Many citizens have accused some governors and local government chairmen of diverting funds meant for projects, payment of salaries, and provision of basic amenities.
To tackle this problem, President Tinubu has now directed that the anti-graft agency, EFCC, should be fully involved in tracking FAAC disbursements from the point of release to how it is utilized.
Under the new arrangement, the EFCC will monitor the release and utilization of FAAC allocations. The Commission will pay special attention to cases of financial irregularities, diversion of funds, embezzlement, and other forms of abuse of public resources.
A source in the Presidency said the move is aimed at promoting transparency and accountability in the management of public funds across all tiers of government.
According to the source, the Federal Government wants to make sure that allocations meant for the development of states and local government areas are properly utilized and that the ordinary Nigerian at the grassroots feels the impact of governance.
The development is also expected to strengthen oversight of public resources and serve as a deterrent to those who may want to divert public funds for personal use. State and local government authorities will now be more careful, knowing that their spending is being monitored by the EFCC.
This decision is coming at a time when there have been growing calls from civil society organizations, labour unions, and other stakeholders for greater accountability in the management of government revenues. Many have argued that autonomy for local governments will only make sense if there is strict monitoring of how their funds are spent.
Recall that FAAC shares trillions of naira monthly among the Federal Government, 36 states, and 774 local government areas. With the removal of fuel subsidy, allocations to states and local governments have increased significantly, but many Nigerians still complain of poor infrastructure and lack of development at the grassroots.
Observers believe that with EFCC now monitoring FAAC funds, there will be more transparency and governors and council chairmen will be forced to use the money for the benefit of the people.
The Presidency is yet to release full details on how the monitoring will be carried out, but it is expected that the EFCC will work with other relevant agencies to ensure effective implementation of the directive.
