The Socio-Economic Rights and Accountability Project (SERAP) has asked the Central Bank of Nigeria (CBN) to publicly disclose whether it has started direct disbursement of funds from the Federation Account to the 774 local government councils across Nigeria, in line with a Supreme Court ruling.
In a Freedom of Information (FOI) request dated May 10 and signed by its deputy director, Kolawole Oluwadare, SERAP specifically urged CBN Governor, Mr. Olayemi Cardoso, to confirm if any payments have also been made to local councils in Rivers State, and to explain the reasons behind such transactions.
This follows the Supreme Court’s 2023 judgment which stated that state governors have no authority to control or disburse allocations meant for local governments. The court ruled that all funds from the Federation Account must be paid directly to democratically elected local councils.
SERAP warned that failure by the CBN to follow the Supreme Court ruling or to disclose the information within seven days would lead to legal action. The group stressed that diverting local government funds through state governments contradicts both the Nigerian Constitution and the country’s anti-corruption obligations.
“The CBN has a duty to protect public funds and ensure no tier of government, especially local councils, is undermined or rendered powerless,” SERAP said in the statement.
The organization also cited a past statement by former President Muhammadu Buhari, who alleged that state governors often misappropriate funds meant for local councils, giving them only a fraction of the allocation while demanding signatures for the full amount.
SERAP said that transparency from the CBN is essential ahead of the 2027 general elections, warning that continued tampering with council funds would worsen poverty and weaken democracy at the grassroots.
The Federation Account Allocation Committee (FAAC) reportedly shared N1.578 trillion among federal, state, and local governments in March 2025. SERAP now wants details of how much went directly to local councils, and whether Rivers State councils received funds in line with the law.
