Alleged Looting Scandal Rocks Lagos: Former LCDA Chairperson Reportedly Spent ₦492 Million in 72 Hours, Left Only ₦20 Million in Council Account

A storm of outrage is brewing in Lagos State following shocking revelations that a former Local Council Development Area (LCDA) chairperson allegedly spent ₦492 million just three days before the end of her tenure, leaving only ₦20 million in the council’s coffers.

According to a detailed report published by Lanre Adewole, a senior staff member of Tribune Newspapers, the former LCDA boss received ₦512 million from the Federation Account merely 72 hours before vacating office. The explosive disclosure formed part of a report submitted to the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, and became the focus of a closed-door meeting held between state legislators and local government chairpersons across Lagos.

Adewole’s report painted a grim picture of financial recklessness at the grassroots level. It revealed that “an immediate past chairperson of a LCDA got ₦512 million as allocation for her last month in office.

“By the time the new man took over, a whopping ₦492 million had disappeared. She spent ₦492 million in 72 hours, leaving behind a paltry ₦20 million for her successor.”

Further details indicated that “seven councillors who served with this ‘princess’ got ₦1 million each, while the supervisory councillors also got parting gifts in millions. And everyone went home for thanksgiving.”

Between January and July 2025 alone, the LCDA reportedly received ₦4.8 billion as allocations. Yet, according to Adewole, a newly constructed multi-million-naira hotel in Osogbo, Osun State, and another high-end property in Magodo GRA Phase 2, Lagos, have now been linked to the former council boss.

Quoting directly from the report submitted to Speaker Obasa, Adewole described the alleged financial recklessness as “unparalleled by any Local Government in Nigeria,” stating that there exists “a disturbing pattern of (alleged) looting, particularly the (alleged) diversion of monthly Joint Allocation Committee (JAC) funds.”

The report further noted that Speaker Obasa had earlier summoned council chairmen and management staff to address growing concerns about misuse of public funds. However, despite the warnings, the alleged acts of financial mismanagement reportedly continued unabated.

“There is a formula ratio of 30% to the management staff from and payment made from the LG accounts, particularly when it is spurious, which they tag as ‘RUN’; management get this 30%, plus another 5% for retirement,” the report said. It also alleged that “these cadre of management officials (allegedly) buy their posting from the Local Government Service Commission at varying cost, from Five Million Naira to Twenty Million Naira, with a monthly premium of Two million, Five Hundred Thousand Naira for ‘Category A’ LGs.”

It further accused a powerful director, said to be a relative of a top political figure, of coordinating this alleged corruption ring, adding that “he is (allegedly) feared even by members of the Local Government Service Commission.”

The report also claimed that newly elected council chairmen have already squandered July and August allocations.

“For instance, the Chairman of a metropolitan LG has embarked on lavish trips to London, Saudi Arabia (under the guise of ‘lesser Hajj’), and Dubai, accompanied by associates for ‘birthday festivities of an urbane Oba’. Meanwhile, his counterpart in an LCDA stands accused of siphoning over N2 billion to construct private properties within the council area, now under ICPC investigation.”

Equally worrisome are revelations that some former council bosses still allegedly control their local government accounts and approve questionable payments through loyalists still in the system.

“The Speaker’s warning to current Chairmen appears ignored, as the propensity to loot now rivals governance priorities. This culture of impunity, treating public funds as personal ATMs, undermines trust in local governance and deprives communities of critical infrastructure and services,” the report lamented.

The report concluded with a strong call to action, urging Governor Babajide Sanwo-Olu to “initiate immediate audits of all LGs/LCDAs to trace fund utilization, sanction indicted officials, including recovering misappropriated funds, strengthen transparency mechanisms such as mandating public expenditure reports, and halt all staff postings pending a holistic audit.”

It added pointedly: “The time to act is now. Lagosians demand accountability, not luxury junkets funded by their sweat. Failure to address this crisis risks normalizing corruption and crippling local governance.”

The revelations have sparked widespread public anger, with growing calls for investigations by anti-graft agencies and a thorough probe into the activities of local government councils in Lagos State.