Nigeria’s anti-graft agency is examining the financial activities of all 774 local government chairmen amid growing scrutiny over how councils have utilised funds received since gaining financial autonomy.

The Economic and Financial Crimes Commission (EFCC) has reportedly launched a discreet nationwide investigation into the management and expenditure of public funds by local government authorities across Nigeria.

According to findings, investigators are working through the commission’s zonal directorates, with the exercise covering all 36 states and the Federal Capital Territory.

Investigators are particularly interested in determining whether council chairmen have managed their financial allocations responsibly and whether greater financial independence has produced meaningful improvements in grassroots development.

Beyond examining expenditure records, the commission is also assessing the administrative competence, managerial abilities and integrity of officials entrusted with public resources.

An official from a state Ministry of Local Government reportedly confirmed that council chairmen in the state were being investigated over their spending. However, sources within the EFCC clarified that the exercise was nationwide rather than restricted to one state.

According to one source familiar with the investigation, authorities want to establish whether local governments have recorded measurable progress since becoming financially independent.

The investigation follows a landmark Supreme Court ruling delivered on July 11, 2024, which strengthened the financial independence of Nigeria’s local government councils.

Before the judgment, state governments exercised considerable control over local government allocations, with concerns frequently raised about delays, withholding of funds and the use of caretaker committees instead of democratically elected councils.

In May 2024, the Federal Government, through the Attorney-General of the Federation, Lateef Fagbemi, approached the Supreme Court to challenge these practices and seek direct financial administration for local governments.

Delivering its judgment, the seven-member panel led by Justice Garba Lawal ruled that governors could not control or withhold funds constitutionally allocated to local government councils. It also directed the Accountant-General of the Federation to pay allocations directly into local government accounts.

The decision was expected to give elected council officials greater control over their finances and enable them to implement development programmes without undue interference from state governments.

Plans to scrutinise local government finances are not entirely new. In October 2024, EFCC Chairman, Ola Olukoyede, disclosed that the commission would monitor budget implementation across local government councils.

He explained that the agency intended to work with relevant stakeholders to track public expenditure and ensure allocations were used for their approved purposes.

Olukoyede also identified the expansion of the commission’s zonal directorates as part of efforts to strengthen its monitoring capacity nationwide.

Officials found guilty of diverting public resources or violating financial regulations could face prosecution, according to the EFCC chairman’s earlier position.

Nigeria’s 774 local government areas occupy a critical position in the country’s governance structure, with responsibilities that directly affect everyday life in local communities.

Residents expect financial independence to translate into better roads, functional primary healthcare centres, improved public schools, clean water, sanitation and other essential services.

Consequently, the latest investigation could become an important test of whether financial autonomy is delivering its intended benefits or simply transferring control of public funds without sufficient accountability.

While the EFCC has not publicly disclosed detailed findings from the ongoing exercise, its reported nationwide scope signals increased scrutiny of financial management at the third tier of government.