From Victor Osula, Abuja
The Socio-Economic Rights and Accountability Project (SERAP) has asked the Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, to confirm whether the apex bank has begun the direct disbursement of allocations from the Federation Account to the country’s 774 local government councils.
In a Freedom of Information request dated May 10, 2025, and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation urged the CBN to publicly disclose the amounts—if any—so far sent to each council.
SERAP also requested clarification on whether any direct payments had been made to local governments in Rivers State, and the rationale behind such disbursement.
The group’s request follows a recent Supreme Court ruling that barred governors and other authorities from controlling or disbursing funds meant for local governments, mandating that all allocations be paid directly to democratically elected councils.
“The CBN has a constitutional and statutory duty to protect the integrity of the Federation Account and ensure direct allocations to the three tiers of government, as mandated by the Supreme Court,” SERAP stated.
It noted that many state governors were allegedly still starving local governments of funds despite the court’s judgment, warning that such disobedience undermines the rule of law.
“The CBN should facilitate compliance with the court’s orders. If governors are allowed to defy the judiciary, it could jeopardize the bank’s constitutional responsibilities,” the letter added.
SERAP argued that adherence to the court’s decision is crucial ahead of the 2027 elections and stressed that the ongoing diversion of funds to state governments harms poor Nigerians and worsens economic hardship at the grassroots.
The group threatened legal action if its requests are not met within seven days of receiving or publishing the letter.
“Local governments are entitled to their funds. The states and the Federal Capital Territory no longer have the right to retain or manage these allocations,” SERAP said.
It also pointed out that the Supreme Court had declared the Freedom of Information Act applicable to public institutions such as the CBN, thereby obligating the bank to disclose the requested information.
Referencing former President Muhammadu Buhari, SERAP recalled his 2022 comments alleging that local government funds were often diverted by state governors, who forced council chairmen to sign inflated receipts while pocketing the difference.
The group noted that, following the court ruling, the 774 councils had reportedly opened dedicated accounts with the CBN to receive direct allocations.
According to reports, the Federation Account Allocation Committee (FAAC) shared a total of N1.578 trillion among the three tiers of government for March 2025.
