Socio-Economic Rights and Accountability Project (SERAP) Sues Central Bank of Nigeria over Failure to Disclose Direct Payments to Local Government Councils

Strategic Insights -

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over the failure to disclose details of direct payments to the 774 local government councils in Nigeria. The suit follows a landmark judgment by the Supreme Court in July 2024, which held that allocations from the Federation Account with the CBN must be paid directly to democratically elected local government councils. SERAP is seeking an order directing the CBN to disclose the details of any direct payments made to the councils, including the amounts sent to each council since the Supreme Court judgment.

Key Takeaways:

  • The Supreme Court in July 2024 declared that allocations from the Federation Account with the CBN must be paid directly to democratically elected local government councils, and that no governor has the power to keep, control, or use the money meant for the councils.
  • SERAP is asking the court to direct the CBN to disclose the details of any direct payments made to the 774 local government councils in Nigeria, including the amounts sent to each council since the Supreme Court judgment.
  • In the suit, SERAP is arguing that the CBN should make it possible for citizens to have access to the details of any direct payments to the councils to ensure transparency and accountability.
  • SERAP is also arguing that granting the reliefs sought would promote the values and principles that underlie the Nigerian Constitution 1999 as amended and are inherent characteristics of an open democratic society.
  • The CBN has a constitutional and statutory duty to ensure that no part of the Federation is governed contrary to the Nigerian Constitution or by anybody that is not constitutionally empowered to do so.
  • 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.
  • Nigeria's Supreme Court has declared unconstitutional and unlawful the retaining and using by the 36 state governors and FCT minister of allocations in the Federation Account meant for the 774 local governments in the country.

Statistics:

  • The Federation Account Allocation Committee (FAAC) shared N1.578 trillion among the three tiers of government as revenue generated in March 2025.
  • The Supreme Court judgment in July 2024 declared that allocations from the Federation Account with the CBN must be paid directly to democratically elected local government councils.
  • SERAP has filed a lawsuit against the Central Bank of Nigeria (CBN) over the failure to disclose details of direct payments to the 774 local government councils in Nigeria.
  • The CBN has a responsibility to comply with the Nigerian Constitution and the country's international human rights and anticorruption obligations in the exercise of its statutory powers and functions.

Sources:

  • Supreme Court judgment in July 2024 (no specific date mentioned in the original text)
  • Socio-Economic Rights and Accountability Project (SERAP) lawsuit against the Central Bank of Nigeria (CBN) (filed on Friday, no specific date mentioned)
  • Nigerian Constitution 1999 as amended
  • Freedom of Information Act 2011
  • African Charter on Human and Peoples' Rights
  • Federation Account Allocation Committee (FAAC) press release regarding revenue generated in March 2025 (no specific date mentioned)