By Charles Maduka
The Socio-Economic Rights and Accountability Project has instituted a legal action against the Central Bank of Nigeria for allegedly failing to disclose the details of funds disbursed directly to Nigeria’s 774 local government councils.
The suit, filed at the Federal High Court in Lagos, followed a July Supreme Court ruling which ordered that allocations from the Federation Account must be paid directly to democratically elected local governments, with no interference from state governors.
SERAP is urging the court to compel the apex bank to reveal whether it has complied with the ruling and, if so, to provide the amounts sent to each council across the country. The group is also specifically seeking information on any disbursement to local governments in Rivers State and the reasons behind such transactions.
According to SERAP’s Deputy Director, Kolawole Oluwadare, the case is a test of transparency, public accountability, and the enforcement of judicial decisions.
“Citizens deserve to know if their local governments are receiving their due share. Without such disclosure, there is no way to measure compliance with the Supreme Court’s orders,” he said.
SERAP further argued that withholding this information empowers state governors to continue diverting funds meant for local governance, thereby threatening the existence and effectiveness of local administrations.
The organisation insisted that the CBN has both a legal and constitutional obligation to ensure that public funds from the Federation Account reach all tiers of government, particularly the local councils, which it described as the legitimate owners of the allocations.
It warned that failure by the CBN to act transparently could embolden state actors to defy court rulings, thereby eroding the rule of law and weakening democratic institutions.
The group also stressed that in line with the Freedom of Information Act and the African Charter on Human and Peoples’ Rights, the CBN is obligated to publicly disclose the requested details, especially ahead of the 2027 general elections when fund transparency will be crucial.
SERAP maintained that continued retention of local government funds by state authorities undermines development at the grassroots and worsens poverty among vulnerable Nigerians.
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