The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its alleged failure to disclose details of direct payments made to Nigeria’s 774 local government areas (LGAs), including councils in Rivers State.
This legal move follows a July 2024 Supreme Court ruling that ordered all funds from the Federation Account meant for LGAs must be paid directly to them. The court held that governors and the Federal Capital Territory Minister have no right to withhold or control money intended for the councils.
In the suit (FHC/L/MSC/521/2025), filed at the Federal High Court in Lagos last Friday, SERAP is asking the court to compel the CBN to publicly release records of payments made directly to each LGA since the court ruling.
SERAP insists the CBN has a duty to uphold the Constitution and ensure that local governments receive their full allocations without interference from state governors. “Citizens deserve to know how much is being paid to each council. This is a matter of transparency and accountability,” SERAP said.
According to the group, despite the Supreme Court judgment, state governors continue to starve local councils of funds. “This disobedience undermines the rule of law and threatens the existence of local governments as the third tier of government,” the suit reads.
SERAP is specifically demanding that the CBN disclose whether any direct payments have been made to LGAs in Rivers State and to explain the basis for such disbursements. The group is also calling for the CBN to stop enabling state governments to tamper with LGA funds.
In the suit filed by lawyers Kolawole Oluwadare and Oluwakemi Oni, SERAP argues that the Freedom of Information Act, the Nigerian Constitution, and the African Charter on Human and Peoples’ Rights all compel the CBN to release public financial records.
The Federation Account Allocation Committee (FAAC) reportedly shared over N1.57 trillion among the three tiers of government in March 2025 alone. However, concerns persist over how much of this is actually reaching the grassroots.
SERAP also cited a past comment by former President Muhammadu Buhari, who accused governors of shortchanging LGAs by forcing council chairmen to sign inflated payment receipts and pocketing the difference.
The case, now before the Lagos court, highlights growing pressure on federal institutions to ensure transparency and enforce court rulings aimed at strengthening grassroots governance ahead of the 2027 general elections.
