The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, to urgently disclose whether the bank has begun the direct disbursement of funds to Nigeria’s 774 local government councils from the Federation Account. In a Freedom of Information (FOI) request dated 10 May 2025, SERAP pressed the CBN for clarity on the amounts sent to each council, and whether Rivers State councils have received any direct payments.
This call follows a landmark Supreme Court ruling from July 2024, which declared that no governor or agency is permitted to withhold, control, or distribute funds intended for local governments. According to the ruling, allocations from the Federation Account must be directly sent to democratically elected councils.
In its request, SERAP highlighted the CBN’s statutory responsibility to safeguard and disburse public funds in accordance with the Constitution. The group accused state governors of undermining the Supreme Court’s decision by continuing to divert these funds, a practice that has placed local governments at risk of financial peril.
The FOI request also seeks to clarify whether the CBN has taken steps to ensure compliance with the ruling, which prohibits states and the Federal Capital Territory (FCT) from interfering with the disbursement of local government funds. SERAP warned that failure to act would further exacerbate poverty and undermine governance in Nigeria’s local councils, which are already struggling with insufficient resources.
The Supreme Court’s decision, which followed allegations of mismanagement of local government funds, has brought increased scrutiny to how states handle allocations. Former President Muhammadu Buhari, in 2022, revealed the extent of corruption, claiming that local government chairmen were signing for amounts they never received, while state governors siphoned off a significant portion.
In response, the 774 local governments reportedly opened dedicated accounts with the CBN for the direct disbursement of allocations. SERAP has called for transparency in these payments to ensure local governments receive the funds they are rightfully entitled to and prevent any further abuse.
The CBN’s role in this process is critical, as it must ensure the integrity of the Federation Account while promoting good governance and accountability across all levels ofgovernment.
