SERAP Sues CBN Over Failure to Disclose Payments to Local Governments

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) seeking disclosure of details of direct payments to the 774 local government councils. The suit follows a Supreme Court judgment in July 2024, which ruled that allocations from the Federation Account must be paid directly to democratically elected local government councils. SERAP is seeking the disclosure of the amounts sent to each council and whether any payment has been made from the Federation Account to the local government councils in Rivers State.

Key Takeaways:

• SERAP is suing the CBN over the failure to disclose the details of direct payments to the 774 local government councils in Nigeria.
• The suit follows a Supreme Court judgment in July 2024, which ruled that allocations from the Federation Account must be paid directly to democratically elected local government councils.
• SERAP is seeking the disclosure of the amounts sent to each council and whether any payment has been made from the Federation Account to the local government councils in Rivers State.
• The CBN has a constitutional and statutory duty to ensure that the 774 councils directly get their own money from the Federation Account, as ordered by the Supreme Court.
• State governors have been starving local governments of funds and putting them in peril, despite the Supreme Court's binding orders.
• The disbursement of allocations meant for local governments to states would be at the expense of poor Nigerians and continue to undermine their rights and well-being.
• The CBN has a responsibility to comply with the Nigerian Constitution and the country's international human rights and anti-corruption obligations.
• Local government councils are entitled to a direct payment from the Federation Account of the amount standing to its credit in the said Federation Account.
• The Supreme Court has declared that the Freedom of Information Act is applicable and applies to the public records in the Federation, including those kept by the CBN.
• Nigeria's anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions' activities.

Statistics:

• N1.578 trillion: The total amount shared among the three tiers of government as revenue generated in March 2025 by the Federation Account Allocation Committee (FAAC).
• 774: The number of local government councils in Nigeria that are entitled to a direct payment from the Federation Account.
• July 2024: The month in which the Supreme Court ruled that allocations from the Federation Account must be paid directly to democratically elected local government councils.
• 36: The number of state governors in Nigeria who are said to have been retaining and using allocations in the Federation Account meant for local governments.
• N100 million: The amount of money that former president Muhammadu Buhari stated was being sent to state governors from the Federation Account.

Sources:

• SERAP's lawsuit filed at the Federal High Court, Lagos
• Supreme Court judgment of July 2024
• Freedom of Information Act 2011
• African Charter on Human and Peoples' Rights
• Nigerian Constitution 1999 (as amended)
• Federation Account Allocation Committee (FAAC)
• Reports from former president Muhammadu Buhari