The Economic and Financial Crimes Commission (EFCC) says it has begun monitoring allocations from the Federation Account Allocation Committee (FAAC) to states and local governments as part of a shift towards preventing the diversion of public funds before it occurs.
EFCC Chairman Ola Olukoyede disclosed the development on Thursday while speaking at the commissioning of the commission’s new Zonal Directorate in Awka, Anambra State.
According to Olukoyede, President Bola Tinubu approved the commission’s monitoring of FAAC releases to states and local governments.
“Mr President has gracefully approved for us to also monitor FAAC releases to states and to local government,” Olukoyede said.
The announcement represents an expansion of the EFCC’s stated preventive approach to financial crime. Rather than relying primarily on investigations and asset recovery after funds have allegedly been diverted, the commission says it wants to identify weaknesses in public financial systems before losses occur.
EFCC shifts focus to prevention
Olukoyede said the commission had established a Department of Fraud Risk Assessment and Control to strengthen its preventive efforts.
He explained that the department had started working with ministries, departments and agencies to examine financial releases and track how public resources were being utilised.
The same approach, he said, is now being extended to money distributed through FAAC to state and local governments.
“So we are now in the business of preventing while we are still enforcing the one that fits us out. We no longer wait for money to be stolen before EFCC acts,” he said.
The chairman said the objective is to identify vulnerabilities in the management of public funds and introduce stronger controls before resources can be diverted.
EFCC says recovery of stolen funds can be costly
Olukoyede argued that prevention can reduce the financial and institutional costs associated with investigating and recovering funds after they have been stolen.
He said the commission’s experience showed that only part of diverted funds might ultimately be recovered, while the recovery process itself could involve substantial costs.
“Which one is the most effective or more effective way of fighting financial crimes? Prevention,” he said.
The figures cited by the chairman come as the EFCC reports a significant volume of enforcement activity under his tenure.
EFCC reports 10,872 convictions
Olukoyede said that between October 2023 and July 2026, the EFCC received 49,673 petitions, investigated 39,615 cases and filed 14,476 cases in court.
He said the commission secured 10,872 convictions during the period.
For the first half of 2026, the EFCC chairman said the commission secured 1,370 convictions from 1,889 court filings.
He also reported recoveries of approximately ₦1.23 trillion, $684.48 million, £373,905.78 and €9.34 million, alongside recoveries in other currencies. Vanguard reported the specific figures as ₦1,233,612,040,411.11, $684,478,457.32, £373,905.78 and €9,343,803.66.
EFCC targets IGR, land registries
Olukoyede said the commission’s expanded presence in Anambra and Imo would allow it to work more closely with governments and other institutions to identify areas vulnerable to fraud.
He specifically mentioned internally generated revenue (IGR) and land registries as areas where fraud-risk assessments and stronger controls could be introduced.
“We look at vulnerable areas, your IGR, land registry particularly, and areas that are vulnerable to fraud,” he said.
The EFCC says the objective is not only to investigate wrongdoing but also to help government institutions identify weaknesses that could facilitate financial crimes.
Awka EFCC directorate to cover Anambra and Imo
The newly commissioned Awka Zonal Directorate will cover Anambra and Imo states.
Olukoyede said the expansion was part of the commission’s broader effort to bring its operations closer to economic centres and strengthen its ability to detect and prevent financial crimes.
The development also comes as allocations to the three tiers of government have increased. For example, NBS data reported by Premium Times showed that FAAC distributed ₦3.40 trillion to the federal, state and local governments in June 2026, including ₦759.14 billion to states and ₦534.28 billion to the 774 local government councils.
EFCC urges citizens to monitor public spending
The EFCC chairman also called for greater participation by citizens, civil society organisations, traditional rulers, professional bodies and communities in monitoring government projects and spending.
He said citizens can sometimes identify warning signs of financial misconduct — including abandoned projects or unexplained diversion of public resources — before such matters come to the attention of law enforcement agencies.
He urged Nigerians with credible information about economic and financial crimes to report it through the EFCC’s established channels.
What the new FAAC monitoring means
The EFCC’s announcement indicates that its preventive strategy will extend beyond federal government institutions to state and local government finances.
The commission says it intends to examine potential vulnerabilities in the handling of FAAC-related funds, work with government institutions on fraud-risk assessments and strengthen financial controls while retaining its existing investigation and prosecution functions.
The announcement does not, by itself, establish that any particular state or local government has diverted FAAC funds. The stated purpose of the initiative is preventive monitoring and identification of vulnerabilities in public-finance management.