Rephrased Report:
The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to immediately confirm whether the apex bank has begun the direct transfer of monthly allocations from the Federation Account to Nigeria’s 774 local government councils, as mandated by a Supreme Court ruling.
In a Freedom of Information (FoI) request dated May 10, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization urged the CBN to publicly disclose the specific amounts—if any—that have been disbursed to each local government directly and to confirm whether any allocations have reached the local governments in Rivers State. SERAP also requested a detailed explanation behind any such disbursements.
This move follows a landmark judgment by the Supreme Court in July 2023, which ruled that governors and state agencies have no constitutional right to intercept, retain, or disburse funds meant for local governments. The court emphasized that allocations from the Federation Account must be paid directly to democratically elected local government councils without interference.
SERAP insisted that the CBN must act in the public interest by ensuring compliance with the Supreme Court’s ruling, thereby enabling the constitutionally recognized third tier of government to function effectively. According to SERAP, the CBN is duty-bound—both constitutionally and statutorily—to safeguard public funds and prevent their misuse by state authorities.
The organization criticized state governors for allegedly starving local governments of funds, arguing that such actions undermine democratic governance, the rule of law, and the Supreme Court’s authority. SERAP stressed that non-compliance by state governors threatens the credibility and effectiveness of the CBN, particularly as Nigeria approaches the 2027 general elections.
The letter further highlighted that local governments are constitutionally entitled to their full share of allocations and should no longer have their funds intercepted or mismanaged by state governments or the Federal Capital Territory (FCT). SERAP warned that continued tampering with these funds disproportionately harms poor Nigerians and deepens economic inequality.
SERAP argued that the CBN has a unique opportunity to help rejuvenate Nigeria’s local governments, many of which are struggling to deliver basic services due to financial constraints. The organization insisted that transparency and accountability, in line with the Nigerian Constitution, the Freedom of Information Act, and international human rights obligations, must guide the CBN’s conduct.
The letter recalled a statement made by former President Muhammadu Buhari in December 2022, where he described how local government chairmen were often forced to sign for full allocations while only receiving partial amounts—alleging that the rest was shared among powerful interests.
Furthermore, SERAP referenced reports indicating that the 774 local governments have now opened dedicated CBN accounts in preparation for direct funding, and that the Federation Account Allocation Committee (FAAC) shared a total of N1.578 trillion among federal, state, and local governments in March 2025 alone.
SERAP concluded its request by giving the CBN a 7-day deadline to respond. Failure to act within this timeframe, the organization warned, would result in legal action to compel the CBN’s compliance in the interest of transparency and accountability.
