The Socio-Economic Rights and Accountability Project (SERAP) has thrown down the gauntlet to the Central Bank of Nigeria (CBN), demanding full disclosure on whether it has quietly begun disbursing funds directly to Nigeria’s 774 local government councils.
SERAP, in a Freedom of Information request dated May 10, 2025, is not just asking questions—it’s issuing ultimatums.
The organisation wants CBN Governor, Mr Olayemi Cardoso, to urgently confirm whether any direct allocations have been paid to local councils from the Federation Account and to immediately publish details of all disbursements—especially those involving Rivers State.
“State governors are starving local governments of funds and putting them in peril,” the group warned in a statement that accused governors of brazenly defying a landmark Supreme Court ruling.
That ruling, delivered in July 2024, struck down the decades-old practice of funneling local government allocations through state governments and ordered direct payments to democratically elected councils.
SERAP isn’t mincing words. “If state governors get away with ignoring the court, it will undermine the ability of the bank to credibly perform its constitutional and statutory duties,” the group stated, hinting at possible legal action if their request is not granted within seven days.
The letter added fuel to mounting public suspicion that state authorities have continued to illegally intercept and siphoned off funds meant for grassroots governance—despite the Supreme Court’s unequivocal declaration.
The group also cited former President Muhammadu Buhari’s shocking 2022 revelation that some local government chairmen were coerced into signing off on inflated amounts, only to receive half while the remainder was allegedly pocketed and shared by state officials.
“The CBN must act now to prevent the complete erosion of Nigeria’s third tier of government,” SERAP declared, accusing states and the FCT of colluding to undermine the system and plunge millions deeper into poverty.
The latest data reveals that N1.578 trillion was shared by the Federation Account Allocation Committee (FAAC) in March 2025—money that SERAP believes must be accounted for to the last kobo.
