SERAP Drags CBN To Court Over Non-Disclosure Of Funds To Local Govts
The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Central Bank of Nigeria (CBN) to court for allegedly failing to disclose details of direct payments to the 774 local government councils across the country.
The suit followed a landmark judgment by the Supreme Court in July 2024, which ruled that allocations from the Federation Account must be paid directly to democratically elected local governments, stating that no governor has the power to withhold or manage funds meant for the councils.
In the suit numbered FHC/L/MSC/521/2025 filed last Friday at the Federal High Court in Lagos, SERAP is seeking an order to compel the CBN to disclose “the details of any direct payments to the 774 local government councils in Nigeria, including the amounts sent to each council since the Supreme Court judgment.”
The organisation also wants the court to order the apex bank to reveal “whether any direct payment has been made from the Federation Account with the CBN to the local government councils in Rivers State and to explain the rationale for any such payment.”
SERAP stated, “The CBN should make it possible for citizens to have access to the details of any direct payments to the 774 local government councils to ensure transparency and accountability, and judge whether the CBN and other agencies are complying with the Supreme Court judgment.
“Granting the reliefs sought would go a long way in promoting the values and principles that underlie the Nigerian Constitution 1999 [as amended] and are inherent characteristics of an open democratic society.”
The group noted that despite the Supreme Court’s binding orders, “State governors are starving local governments of funds and putting them in peril.
“State governors’ blatant disregard for the Supreme Court’s orders undermines the integrity of the court and poses a direct challenge to the rule of law,” it added.
The suit, filed by Kolawole Oluwadare and Oluwakemi Oni on behalf of SERAP, said, “The CBN should be facilitating compliance with the Supreme Court’s orders. If state governors get away with ignoring the court, it will undermine the ability of the bank to credibly perform its statutory duties.
“States and the FCT have continued to undermine and endanger the existence of local governments and their ability to effectively function as the third tier of government as envisioned under the Nigerian Constitution.
“The CBN has a constitutional and statutory duty to protect the allocations in the Federation Account and the public funds disbursed from that Account directly to each of the constitutionally recognized three tiers of government.”
The organisation recalled the July 2024 Supreme Court ruling, which declared it unconstitutional for state governors and the FCT minister to hold on to allocations meant for local governments.
“Following the judgment, the 774 local governments have reportedly opened dedicated accounts with CBN for the direct disbursement of allocations to them from the Federation Account,” SERAP said.
It also referenced a statement by former President Muhammadu Buhari in December 2022: “If the money from the Federation Account to the State is about N100m, N50m will be sent to the chairman, but he will sign that he received N100m. The chairman will pocket the balance and share it with whoever he wants to share it with.”
SERAP further noted, “According to reports, the Federation Account Allocation Committee (FAAC) shared a total of N1.578 trillion among the three tiers of government as revenue generated in March 2025.”
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
