The Socio-Economic Rights and Accountability Project (SERAP), a prominent Nigerian advocacy group, has escalated its campaign for transparency in the management of public funds by issuing a stern call to the Central Bank of Nigeria (CBN).
In a statement released today, SERAP urged the CBN to immediately clarify whether it has begun disbursing allocations directly to Nigeria’s 774 local government areas (LGAs) from the Federation Account, as mandated by a landmark Supreme Court ruling.
The group further demanded that the CBN publicly disclose the exact amounts, if any, that have been sent to each local government council, with a particular focus on payments to LGAs in Rivers State.
This latest move by SERAP comes in the wake of a July 2024 Supreme Court judgment that declared it unconstitutional and unlawful for state governors and the Federal Capital Territory (FCT) Minister to retain and disburse funds meant for local governments.
The ruling, hailed as a victory for local government autonomy, explicitly ordered that the 20.6% of Federation Account allocations designated for LGAs be paid directly to their accounts, bypassing state-controlled joint accounts that have long been criticized for enabling misappropriation.
Despite this clear directive, SERAP and other observers have raised concerns that implementation has been slow, with many state governors allegedly continuing to exert control over LGA funds, undermining their financial independence.
In a letter dated May 10, 2025, addressed to CBN Governor Olayemi Cardoso and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the organization emphasized the public’s right to know how these funds are being managed.
Nigerians deserve transparency and accountability in the disbursement of Federation Account allocations, the letter stated. “We urge the CBN to confirm whether direct payments to the 774 local governments have commenced and to publish detailed records of any amounts disbursed to each council. This is critical to ensuring compliance with the Supreme Court’s orders and preventing states from tampering with funds meant for grassroots development.”
SERAP’s demand for specific details on payments to Rivers State LGAs appears to stem from ongoing political tensions in the state, where disputes between local and state authorities have raised questions about the equitable distribution of funds.
The group’s call for transparency aligns with its broader mission to hold public institutions accountable and protect the socio-economic rights of Nigerians, as enshrined in the Nigerian Constitution, the Freedom of Information Act, and international human rights frameworks like the African Charter on Human and Peoples’ Rights.
The Federation Account, managed by the Federation Account Allocation Committee (FAAC), is a central pool of revenue from oil, taxes, and other sources, shared among Nigeria’s federal, state, and local governments.
According to available data, the 36 states and the FCT have collectively received over N40 trillion in federal allocations meant for LGAs since 1999, with N225.21 billion disbursed for local governments in November 2023 alone.
However, SERAP and other critics argue that much of this money has been siphoned off or mismanaged by state governments, leaving local councils starved of resources to deliver basic services like healthcare, education, and infrastructure.
The Supreme Court’s ruling was intended to end this practice by ensuring that LGAs receive their funds directly, thereby strengthening their autonomy as the third tier of government.
Yet, reports indicate that administrative hurdles, such as the failure of some LGAs to open dedicated CBN accounts, have delayed full implementation. A January 2025 FAAC meeting revealed that many local governments had not provided the necessary account details, prompting the federal government to intensify efforts to resolve these issues.
Sources suggest that all 774 LGAs were expected to begin receiving direct allocations by January 2025, with oversight from the Nigerian Financial Intelligence Unit (NFIU) and anti-corruption agencies like the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
SERAP’s intervention has sparked widespread discussion on social media, with posts on X reflecting public support for the group’s demand for accountability.
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SERAP’s push for direct LGA allocations takes on added significance. The group argues that ensuring financial autonomy for local governments is essential to preventing state governments from manipulating funds for political gain.
The CBN has yet to issue an official response to SERAP’s letter, but the pressure is mounting for the bank to act swiftly. With the federal government, anti-corruption agencies, and civil society groups like SERAP all focused on enforcing the Supreme Court’s ruling.
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