EFCC Chairman Olukoyode
Nigeria’s anti-graft agency has intensified scrutiny of public finance management at the subnational level, with the chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, accusing some state governors of diverting billions of naira in monthly security votes meant to combat rising insecurity in the country.
Speaking on Friday at an annual lecture organised by the Honorary Members’ Forum of the Nigerian Air Force Officers’ Mess at the Sam Ethnan Air Force Base in Ikeja, Lagos, Olukoyede said corruption—rather than a lack of funding—remains the “real elephant in the room” behind Nigeria’s worsening security challenges.
According to the EFCC boss, funds allocated to security and poverty alleviation are frequently converted into foreign currency and stashed abroad, instead of being deployed to strengthen security architecture at the state and regional levels.
He warned that such practices undermine counterinsurgency efforts and indirectly fuel banditry, insurgency and violent extremism across the country.
“Billions of naira are collected monthly by state governors as security votes without accountability,” Olukoyede said.
“These resources, instead of being invested in enhancing the security architecture, often end up in Bureau De Change where they are converted into forex and moved abroad or dissipated into phony investments unrelated to security.”
High-Profile Probes and Fiscal Leakages
Olukoyede cited the ongoing prosecution of Willie Obiano, former governor of Anambra State, as a case study, noting that EFCC investigations allegedly uncovered the diversion of over N4 billion in security votes during his tenure.
He argued that judicious use of such funds could have significantly improved security conditions in Anambra and neighbouring states.
Beyond state-level finances, the EFCC chairman also pointed to corruption in military procurement, referencing the $2.1 billion arms procurement scandal that exposed large-scale diversion of funds meant to equip troops fighting terrorism.
He said the misappropriation of defence resources not only weakened operational capacity but also eroded morale within the armed forces.
“This resource haemorrhage aggravated equipment and logistics challenges that emboldened the adversary,” Olukoyede said, adding that significant sums and properties were recovered from senior military officers implicated in the scandal.
He further highlighted other high-profile corruption cases, including allegations involving a former accountant-general accused of stealing more than N109 billion, and stalled power sector projects linked to bribery and contract manipulation.
According to him, such fiscal leakages compound poverty—particularly in northern Nigeria—and deepen the insecurity crisis.
EFCC Recoveries and Economic Impact
Despite the scale of the challenge, Olukoyede said the EFCC has made notable progress in asset recovery and financial intelligence operations.
Between 2024 and 2025, the agency recovered N566.3 billion, including a record forfeiture of 753 properties.
He added that the commission has also supported economic stability by cracking down on naira abuse, illicit financial flows and money laundering.
Analysts say such recoveries are increasingly critical as Nigeria grapples with weak revenue growth, rising debt service costs and pressure on public finances.
Persistent diversion of security votes and defence funds, they warn, undermines both national security and investor confidence.
Call for Accountability and Collaboration
Olukoyede called for deeper collaboration between the EFCC, the military and other security agencies, stressing that accountability must be central to restoring national stability.
While acknowledging the sacrifices of security personnel, he urged the armed forces to embrace greater transparency in procurement and operations.
“The EFCC cannot win this fight against corruption alone; neither can the military defeat insecurity alone,” he said.
“What is required is the support and cooperation of all Nigerians and greater collaboration and synergy among the military, security and law enforcement agencies.”
He emphasised that financial intelligence is critical to modern security operations and urged constant engagement among agencies to consolidate gains already recorded.
As insecurity continues to weigh on Nigeria’s economic outlook, experts say tackling corruption in security spending remains essential—not only to stabilise fragile regions but also to safeguard public resources, improve governance and support long-term growth.