The Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to ensure strict compliance with the Supreme Court judgment mandating direct disbursement of funds from the Federation Account to the 774 local government councils across the country.
SERAP urged the CBN to halt the longstanding practice whereby state governments and the Federal Capital Territory (FCT) receive and control local government funds. The organisation stressed that such actions violate constitutional provisions and the Supreme Court’s orders, and deprive local governments and their residents of vital development opportunities.
“States and the FCT no longer have the right to retain the allocations for local governments in the Federation Account, as they have persistently failed to utilise the funds for the benefit of the councils and the Nigerian people,” SERAP stated.
The group warned that continued diversion of local government funds would worsen poverty levels and further marginalise vulnerable Nigerians. It added that ahead of the 2027 general elections, it is essential to prevent the misuse of public funds intended for grassroots development.
SERAP emphasised the CBN’s critical role in enforcing transparency and accountability, stating, “The CBN should not allow states to act in breach of the Supreme Court judgment and do whatever they like with public funds meant for local government councils.”
Citing the Nigerian Constitution, the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, SERAP noted that the CBN is under legal obligations to ensure openness and to disclose relevant financial information.
The Supreme Court has ruled that the Freedom of Information Act applies to public records held by federal institutions, including the CBN, reinforcing the call for transparency in the handling of local government allocations.
