The Federal Government of Nigeria has tasked the Nigerian Financial Intelligence Unit (NFIU) with the responsibility of monitoring financial transactions at the local government level to ensure accountability and transparency. In addition to the NFIU, an anti-corruption team comprising officials from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) has been deployed to oversee financial activities in local governments nationwide.
“These anti-corruption agencies will ensure that any misuse of funds is investigated and prosecuted,” a government source disclosed. “If any local government chairman engages in illicit financial practices, they will face legal consequences.”
The new directive places direct responsibility for financial management squarely on local government chairmen, eliminating any opportunity to blame state governors for the diversion of funds. The Federal Government has warned that any chairman found transferring funds back to state governments or engaging in unauthorized financial activities will face immediate consequences.
“Local government chairmen are now fully accountable for financial decisions made within their councils,” the source added. “The funds will go directly to them, and any mismanagement will be met with swift action from the anti-corruption team.”
This initiative also prohibits the practice of funneling local government funds into joint state-local government accounts, a move aimed at bolstering financial autonomy at the grassroots level. Local government leaders have been cautioned to exercise vigilance and avoid any actions that could compromise the integrity of this new system.
The Federal Government views this development as a critical step toward empowering local governments to deliver essential services effectively. By ensuring direct allocation of funds and establishing stringent oversight mechanisms, the initiative is expected to significantly curb corruption and improve governance at the grassroots level.
“This transparency will strengthen the democratic process and ensure that resources allocated to local governments are used for the benefit of the people,” the source stated. “It is a game-changer for Nigeria’s democracy, guaranteeing that funds are not siphoned off for personal or political gain.”
The opening of dedicated accounts for direct fund disbursement marks the beginning of a long-term effort to restore financial independence to local governments. As these accounts are activated and the new system takes effect, local government chairmen are expected to demonstrate their commitment to transparency, accountability, and good governance.
In the months ahead, local government leaders will face heightened scrutiny, with the success of this initiative hinging on their ability to manage funds effectively and deliver much-needed services to their communities. The Federal Government remains resolute in its determination to strengthen governance and improve service delivery at the grassroots level.