SERAP Wants Court To Order CBN To Disclose Direct Payments To 774 LGs

The Socio-Economic Rights and Accountability Project (SERAP) has approached the Federal High Court in Lagos to compel the Central Bank of Nigeria (CBN) to publicly disclose any direct payments to the 774 local government councils in Nigeria, including the amounts sent to each council.

SERAP is also asking the court to compel the apex bank to provide information on whether any direct payments have been made from the Federation Account to the local government councils in Rivers State and an explanation for such payments.

The organisation, in a Suit marked FHC/L/MSC/521/2025, wants the court to direct the CBN to provide the information by the Supreme Court judgment delivered in July 2024, which held that allocations from the Federation Account held by the bank must be directly paid to democratically elected local government councils.

The apex court had also held that governors do not have the authority to withhold, control, or utilise funds meant for the councils.

In an affidavit attached to the suit, which has yet to be assigned to a judge, SERAP argues that the CBN must provide citizens access to direct payment information to ensure transparency and accountability.

The applicant further claimed that granting these requests would promote the values and principles enshrined in the 1999 Nigerian Constitution (as amended) and are fundamental to an open democratic society.

SERAP alleged that state governors are depriving local governments of vital funds, putting them in jeopardy, despite the Supreme Court’s binding orders that their action undermines the judiciary’s integrity and challenges the rule of law.

The applicant also submitted that the CBN has a constitutional and statutory obligation to act in the public interest, ensuring that the 774 councils receive their rightful allocations directly from the Federation Account, as mandated by the Supreme Court.

SERAP stated that the CBN should facilitate compliance with the Supreme Court’s orders because if governors can disregard court rulings without consequence, it will undermine the bank’s capacity to fulfil its statutory duties effectively.

It further argued that, “States and the Federal Capital Territory (FCT) continue to undermine and threaten the existence of local governments, hindering their ability to function effectively as the third tier of government, as envisioned in the Nigerian Constitution.

“Local government councils are legitimate recipients of their allocations from the Federation Account,” the suit asserts.

“States and the FCT no longer have the right to retain allocations meant for local governments in the Federation Account, as they have consistently failed to utilise these funds for the benefit of regional councils and the citizens.

“Diverting allocations intended for the councils to state governments would adversely impact impoverished Nigerians and exacerbate the growing poverty crisis in the country.

“The CBN could play a vital role in revitalising the 774 councils and enhancing opportunities for citizens residing in those areas. The CBN should not permit states to violate the Supreme Court ruling and misuse public funds allocated for local government councils.

“The CBN has the responsibility to adhere to the Nigerian Constitution and meet international human rights and anti-corruption obligations as it carries out its statutory powers and functions,” SERAP stated.