The Socio-Economic Rights and Accountability Project (SERAP) has issued a seven-day ultimatum to the Central Bank of Nigeria (CBN), demanding immediate disclosure on whether it has commenced direct transfers of funds from the Federation Account to the country’s 774 local government councils.
The group is also insisting on a public breakdown of any such disbursements, with a particular focus on Rivers State.
The call was contained in a Freedom of Information (FoI) request dated May 10, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare.
SERAP’s demand follows the July 2023 landmark ruling by the Supreme Court, which declared that only democratically elected local government councils are constitutionally entitled to receive direct allocations from the Federation Account.
The apex court also barred state governors and other agents from withholding or tampering with such funds.
In the letter addressed to the CBN Governor, Mr Olayemi Cardoso, SERAP stated, “The CBN ought to act in the public interest to ensure that the 774 councils in the country directly get their allocations from the Federation Account, as ordered by the Supreme Court.”
SERAP raised concerns that despite the binding nature of the court's decision, local councils across the country continue to face funding blockades from state governments.
The group warned that this persistent violation of the ruling not only undermines the rule of law but poses a grave threat to constitutional democracy and grassroots development.
According to the organisation, Rivers State is a focal point in this battle for financial transparency and local government autonomy.
It called on the CBN to provide specific clarification on disbursements made to councils in the oil-rich state, which has recently been at the centre of heated political debates regarding governance and fiscal independence.
“State governors are starving local governments of funds and putting them in peril, despite the Supreme Court’s binding orders.
“Their blatant disregard for the court’s directives undermines the rule of law and poses a direct challenge to constitutional governance,” SERAP warned.
The group condemned what it described as systemic financial strangulation by state governments, accusing them of hijacking funds meant for grassroots development.
It argued that such interference has led to institutional decay, exacerbated poverty, and denied millions of Nigerians access to basic public services.
“The diversion and mismanagement of local government allocations must stop. Lifting all restrictions on direct disbursements from the Federation Account will ensure compliance with the Supreme Court’s order and prevent the political manipulation of public funds ahead of the 2027 general elections,” the letter added.
SERAP underscored the constitutional and statutory obligations of the CBN to safeguard the financial integrity of all levels of government, including the third tier.
It cautioned that any failure by the apex bank to enforce court orders would amount to complicity in the erosion of Nigeria’s democratic structures.
“The CBN should be facilitating compliance with the Supreme Court’s orders. If state governors get away with ignoring the court, it will damage the bank’s credibility and its ability to perform its constitutional and statutory duties,” it stated.
The group further warned that failure to comply with the FoI request within seven days would result in legal action.
“If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” it said.
SERAP also drew attention to a December 2022 statement by former President Muhammadu Buhari, who disclosed that some governors routinely compel local council chairmen to sign for full allocations while delivering only a fraction of the funds.
“The chairman will pocket the balance and share it with whomever he wants to share it with,” Buhari had said at the time, highlighting the deep-rooted nature of corruption and interference in the local governance system.
Citing the Supreme Court’s interpretation of the FoI Act, SERAP reminded the CBN that it is legally bound to disclose public records under Nigerian law.
The group noted that Nigeria is also obligated under various international and regional anti-corruption frameworks, including the African Charter on Human and Peoples’ Rights.
In March 2025, the Federation Account Allocation Committee (FAAC) reported that N1.578 trillion was shared among the three tiers of government.
SERAP is now demanding full transparency on how much of this sum was directly allocated to the 774 local government councils.
The organisation concluded by reiterating its commitment to pursue all legal means necessary to enforce compliance and protect the integrity of Nigeria’s democratic institutions.
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