The Socio-Economic Rights and Accountability Project (SERAP) sues CBN over local government funds, citing the bank’s failure to disclose payments made directly to Nigeria’s 774 local councils, including those in Rivers State. The group filed the suit on Friday at the Federal High Court in Lagos. SERAP insists the disclosure is essential to protect public interest and improve the lives of people with low incomes across the country.
Group Demands Breakdown of Allocations
SERAP is asking the court to compel the Central Bank of Nigeria to reveal how much was sent to each local government. The suit, marked FHC/L/MSC/521/2025, follows a 2024 Supreme Court ruling. That judgment required direct disbursement of federal allocations to democratically elected local governments.
In July 2024, the Supreme Court declared that state governors cannot withhold or manage funds meant for LGAs. Therefore, the court directed that all federal allocations must go directly to the councils.
In response, SERAP argues that the CBN must now act transparently. Citizens, the group says, deserve access to such information to ensure accountability.
Governors Accused of Violating Court Orders
Despite the judgment, SERAP alleges that many governors continue to block these direct payments. According to the group, this undermines the rule of law and challenges the authority of the Supreme Court.
“State governors’ blatant disregard for the Supreme Court’s orders weakens judicial authority,” SERAP stated.
CBN’s Constitutional Role Highlighted
SERAP maintains that the CBN has both a constitutional and statutory duty to protect the Federation Account. More importantly, it must guarantee that each of the 774 local councils receives its fair share.
“The CBN should act in the public interest and follow the Supreme Court’s decision,” the suit argues.
The group is represented in court by lawyers Kolawole Oluwadare and Oluwakemi Oni. They believe that disclosing the payment details will uphold democratic principles and prevent fund diversion.
Warning Ahead of 2027 General Elections
With the 2027 elections fast approaching, SERAP is urging immediate action. The group warns that allowing governors to divert funds could worsen poverty and deepen inequality at the grassroots level.
“When states control local funds, it negatively affects people with low incomes and weakens grassroots development,” the statement said.
Background: FG vs. State Governors
In 2024, the Federal Government took all 36 governors to the Supreme Court. It accused them of mismanaging LGA funds and demanded a ruling in favor of direct transfers.
The court sided with the Federal Government. It ordered that funds from the Federation Account be paid directly to local governments, bypassing state authorities. Councils were also directed to open accounts with the CBN to receive the funds.
Bottom Line
By suing the CBN over local government funds, SERAP seeks to ensure full compliance with the Supreme Court’s ruling. The group wants transparency in how public funds are handled and aims to secure better services for people, especially those with limited economic resources, at the local level.
