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Local government

SERAP Sues CBN Over Alleged Failure to Disclose Local Government Allocations

Strategic Insights

— 2 min read

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 from the Federation Account to the 774 local government councils across the country. The suit seeks to compel the CBN to disclose the amounts paid to each council since the recent Supreme Court judgment that barred governors from withholding local government allocations. SERAP argues that public access to information about FAAC allocations would promote transparency and allow citizens to hold the CBN and other relevant agencies accountable.

Key Takeaways:

  • SERAP is seeking an order to compel the CBN to disclose the amounts paid to each local government council since the recent Supreme Court judgment.
  • The CBN is alleged to have failed to disclose details of direct payments from the Federation Account to the 774 local government councils.
  • The suit follows a landmark ruling by the Supreme Court which declared it unconstitutional for governors or any other authority to control, retain, or disburse funds meant for local governments.
  • The Supreme Court held that all allocations from the Federation Account must go directly to democratically elected councils.
  • SERAP argues that the CBN has a constitutional and statutory duty to protect public funds and ensure that local councils receive their full allocations without interference.
  • The group expressed concern that many states and the FCT continue to undermine the third tier of government, threatening the very existence of local councils.
  • SERAP stressed that local councils are constitutionally entitled to receive their allocations directly and that further interference by states or the FCT would exacerbate poverty and hinder development at the grassroots.
  • The group urged the CBN to play a leading role in restoring the autonomy of local councils by ensuring compliance with the Supreme Court decision.

Statistics:

  • The Federation Account Allocation Committee (FAAC) shared a total of N1.578 trillion among the three tiers of government as revenue generated in March 2025.
  • The Supreme Court ruled that all allocations from the Federation Account must go directly to democratically elected councils.
  • SERAP is seeking an order to compel the CBN to disclose the amounts paid to each local government council.
  • The CBN has a constitutional and statutory duty to protect public funds and ensure that local councils receive their full allocations without interference.

Sources:

  • Socio-Economic Rights and Accountability Project (SERAP)
  • Federal High Court of Nigeria (FHC/L/MSC/521/2025)
  • African Charter on Human and Peoples' Rights
  • Freedom of Information Act, 2011
  • Federation Account Allocation Committee (FAAC)
  • Supreme Court of Nigeria

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