The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for allegedly failing to disclose details of direct disbursements to Nigeria’s 774 local government areas, as mandated by a landmark Supreme Court judgment.
The lawsuit, filed at the Federal High Court in Lagos (Suit No: FHC/L/MSC/521/2025), seeks to compel the CBN to reveal how much has been directly allocated to each council from the Federation Account since the court ruling. SERAP also demands specific details on payments—if any—made to local governments in Rivers State, and the basis for such transactions.
This legal move comes in the wake of the Supreme Court’s July 2024 judgment, which declared that state governors have no constitutional authority to control or withhold funds allocated to democratically elected local governments.
The apex court directed that all funds from the Federation Account be paid directly to councils through the CBN.
SERAP argues that the CBN has a legal duty to ensure transparency, uphold the Constitution, and protect the financial autonomy of local councils.
“Citizens deserve to know whether the CBN is complying with the Supreme Court’s ruling,” the organisation stated, warning that continued secrecy could erode public trust and jeopardise local governance.
The group accused state governors of “blatantly ignoring” the court’s decision by starving councils of funds, thereby crippling grassroots development.
It said the CBN must not remain complicit in actions that risk undermining the third tier of government.
“The CBN must ensure that the 774 councils receive their full allocations directly, as constitutionally mandated. Any deviation would not only violate the Supreme Court’s ruling but also harm millions of Nigerians who rely on basic services at the local level,” the statement read.
SERAP’s legal counsel, Kolawole Oluwadare and Oluwakemi Oni, submitted that the Freedom of Information Act and the Nigerian Constitution empower citizens to demand accountability from public institutions, including the CBN.
They further cited Nigeria’s international obligations under the African Charter on Human and Peoples’ Rights, which support citizens’ right to transparent governance.
Highlighting the stakes, SERAP warned that failure to enforce direct disbursements could have dire consequences ahead of the 2027 general elections.
“Allocations meant for the people are being mismanaged by states. Without direct access to these funds, councils are being strangled into irrelevance,” it said.
Referencing former President Muhammadu Buhari’s 2022 statement, SERAP recalled how local government chairmen were often forced to sign off inflated receipts while a portion of their allocations was siphoned off.
It said in March 2025 alone, the Federation Account Allocation Committee (FAAC) reportedly distributed N1.578 trillion among the three tiers of government.
SERAP insists that such massive disbursements must be accounted for, right down to the grassroots.
The organisation urged the judiciary to compel the CBN to act in line with the Constitution and the Supreme Court’s directive, saying: “Anything less would signal a dangerous erosion of the rule of law and open the floodgates for continued abuse of public funds.”
