The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to disclose whether the apex bank has begun direct disbursements of funds from the Federation Account to the 774 local government councils across the country.
In a Freedom of Information request dated May 10 and signed by SERAP Deputy Director Kolawole Oluwadare, the organization demanded that the CBN publish details of any such payments, including allocations specifically disbursed to local councils in Rivers State.
SERAP’s request follows the Supreme Court’s landmark ruling in July 2023, which declared that state governors and other agencies lack the authority to withhold or manage funds meant for local governments. The court affirmed that all allocations from the Federation Account must be transferred directly to democratically elected local government councils.
“The CBN has a constitutional and statutory obligation to ensure transparency in the disbursement of public funds and to uphold the Supreme Court’s ruling,” SERAP stated. “It must not allow any arm of government to subvert the rights of local councils to direct access to their funds.”
The organization accused some state governors of defying the court’s directive and starving local governments of vital resources, thereby threatening their existence and functionality.
“State governments’ continued disregard for the court’s judgment undermines the rule of law,” the letter read. “The CBN must not only comply with the court’s orders but also ensure that state and FCT authorities do not interfere with these funds—especially ahead of the 2027 general elections.”
SERAP further warned that failure to act within seven days would prompt legal action to compel compliance.
The group cited the Nigerian Constitution, the Freedom of Information Act, and international obligations on transparency and anti-corruption, emphasizing that citizens have a right to know how public funds are managed.
The request also referenced former President Muhammadu Buhari’s 2022 remarks, in which he decried the diversion of local government funds by state governors. According to Buhari, “If N100 million is allocated, N50 million gets to the local government, but the chairman is forced to sign for the full amount.”
Recent reports indicate that the Federation Account Allocation Committee (FAAC) distributed N1.578 trillion in March 2025 to the three tiers of government. It remains unclear how much, if any, was directly allocated to local governments through the CBN.
SERAP insists that local councils are entitled to full and direct access to their constitutionally allocated funds, and that the CBN must facilitate this process in the national interest.
Discover more from Rootedscope Media
Subscribe to get the latest posts sent to your email.
