The Socio-Economic Rights and Accountability Project (SERAP) has issued a strong demand to the Central Bank of Nigeria (CBN) to publicly disclose whether it has commenced direct disbursement of allocations to the 774 local government areas (LGAs) across the country. This request follows the recent Supreme Court ruling nullifying the longstanding practice of state governors controlling LGA funds.
In a letter dated May 10, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization urged the CBN Governor, Mr. Olayemi Cardoso, to confirm whether the bank is now disbursing funds directly to LGAs from the Federation Account. SERAP further called for a full breakdown of the amounts, if any, already released to each council—especially in Rivers State—and demanded that the details be made publicly accessible.
“We are writing to request that you use your good offices and leadership position to immediately disclose whether the CBN has commenced the direct disbursement of allocations to the 774 local government councils in Nigeria from the Federation Accounts, and to widely publish the amounts so far sent,” the letter read.
SERAP’s demand stems from the Supreme Court’s landmark judgment which declared unconstitutional the control and disbursement of LGA funds by state governors and the Minister of the Federal Capital Territory. The court emphasized that LGAs are entitled to receive their allocations directly from the Federation Account without interference from state governments.
The advocacy group expressed alarm that, despite the ruling, many governors have allegedly continued to stifle local government funding, effectively sabotaging their autonomy and functionality as the constitutionally recognized third tier of government.
“Local government councils are entitled to a direct payment from the Federation Account. States should not be collecting, receiving, spending, or tampering with local government funds meant for the benefit of the councils,” SERAP noted.
In a stern warning, the organization gave the CBN a seven-day ultimatum to comply with the request or face legal action.
“If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the group stated.
Adding historical weight to its position, SERAP referenced a statement made by former President Muhammadu Buhari in December 2022, where he accused governors of diverting local government funds. According to Buhari, state governments often forced council chairmen to sign off on inflated receipts, pocketing the difference.
The group also cited the March 2025 revenue distribution by the Federation Account Allocation Committee (FAAC), which recorded N1.578 trillion shared among the three tiers of government. SERAP raised questions about whether LGAs had received their lawful share directly, as now mandated by law.
In a broader argument, SERAP asserted that Nigerians have a right to know how public funds are managed. It cited several legal frameworks supporting transparency and accountability, including the Nigerian Constitution, the Freedom of Information Act, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights.
“The public interest in publishing the information sought outweighs any considerations to withhold the information,” SERAP stated. “Nigerians are entitled to the right to receive information without any interference or distortion.”
SERAP reminded the CBN that as a custodian of the Federation Account, it has a statutory obligation to ensure funds are disbursed according to constitutional provisions. The group stressed that transparent and direct allocations to LGAs would not only uphold the Supreme Court ruling but also curb the abuse of power by state governments—especially ahead of the 2027 general elections.
By making this demand public and threatening legal action, SERAP is reinforcing its role as a leading watchdog advocating for good governance, fiscal accountability, and respect for the rule of law in Nigeria.