The Socio-Economic Rights and Accountability Project (SERAP) has dragged the Central Bank of Nigeria (CBN) to court for allegedly failing to disclose full details of direct payments made to Nigeria’s 774 local government areas (LGAs), including those in Rivers State.
The legal action, filed at the Federal High Court in Lagos on Friday and marked FHC/L/MSC/521/2025, follows a landmark July 2024 Supreme Court ruling that ordered the direct disbursement of funds from the Federation Account to elected local councils.
SERAP is seeking a court order compelling the CBN to release comprehensive records of allocations sent to each LGA across the country, in line with the Supreme Court judgment.
The group insists the CBN has a constitutional obligation to ensure transparency and public accountability in the management of public funds.
Represented by lawyers Kolawole Oluwadare and Oluwakemi Oni, SERAP emphasized that access to this information is essential for Nigerians to assess compliance with the court’s ruling and to hold institutions accountable.
In its suit, SERAP accused state governors of deliberately starving local governments of funds, despite the clear directive from the nation’s highest court. “State governors’ blatant disregard for the Supreme Court’s orders undermines the integrity of the court and poses a direct challenge to the rule of law,” the statement read.
SERAP maintained that the CBN has a statutory duty to protect the constitutional structure of governance by ensuring that local councils receive their allocations directly.
It warned that continued diversion of local government funds by state governors could worsen poverty and marginalise vulnerable communities.
With the 2027 general elections in view, SERAP urged the court to enforce compliance with the Supreme Court’s directive, stressing that any further restriction of local government funds would deepen hardship for ordinary Nigerians.
The organization concluded that ensuring direct disbursement of funds to LGAs is critical to preserving democratic governance and strengthening public trust in institutions.
The case is now pending before the Federal High Court in Lagos.
WHAT YOU SHOULD KNOW
SERAP’s lawsuit is more than a legal formality; it is a strategic push for systemic reform. It seeks to protect the autonomy of local governments, enforce the rule of law, and ensure that federal allocations reach the people they are meant to serve.
With economic hardship worsening and political tensions rising ahead of 2027, the outcome of this case could significantly shape Nigeria’s democratic and development trajectory in the coming years.
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