SERAP Sues CBN Over Failure To Disclose Local Government Allocations

The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal action against the Central Bank of Nigeria (CBN) for allegedly failing to disclose details of direct payments to Nigeria’s 774 local government councils. The lawsuit, filed at the Federal High Court in Lagos (Suit No: FHC/L/MSC/521/2025), seeks to compel the CBN to reveal the amounts disbursed to each council from the Federation Account since a Supreme Court ruling in July 2024 mandated such direct payments.

Supreme Court Mandate on Direct Allocations

In July 2024, the Supreme Court ruled that allocations from the Federation Account must be paid directly to democratically elected local government councils, prohibiting state governors from withholding or managing these funds. SERAP contends that the CBN has a constitutional duty to comply with this judgment and ensure transparency in the disbursement process.

Call for Transparency and Accountability

SERAP’s Deputy Director, Kolawole Oluwadare, emphasized the importance of public access to information on fund allocations to promote transparency and accountability. The organization argues that the CBN’s failure to disclose payment details undermines the rule of law and the financial autonomy of local governments.

Implications for Local Governance

The lawsuit highlights concerns over the potential mismanagement of funds meant for local councils, which could adversely affect grassroots development and public services. SERAP warns that continued secrecy and non-compliance with the Supreme Court’s directive may erode public trust and hinder the effective functioning of the third tier of government.

Next Steps

As of now, the court has not scheduled a hearing date for the case. SERAP urges the judiciary to enforce compliance with the Supreme Court’s ruling to uphold constitutional principles and ensure that local governments receive their rightful allocations directly from the Federation Account.