SERAP Asks CBN To Confirm Direct Funds To 774 LGs

The Socio-{Economic} Rights and Accountability Mission (SERAP) has known as on the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to reveal if the {bank} has commenced direct disbursement of allocations to the 774 native authorities councils from the Federation Account.

SERAP, which made the demand in a Freedom of Data request dated Might 10, 2025, additionally demanded the apex {bank} to publicly publish the quantities, if any, which have been despatched instantly to every of the councils.

The civil society organisation, within the FIO request signed by its Deputy Director, Kolawole Oluwadare, additionally requested Cardoso to instantly disclose whether or not any direct funds have been created from the Federation Account to native authorities councils in Rivers State, and to elucidate the rationale behind such funds.

SERAP stated its requests had been primarily based on a Supreme Courtroom judgment delivered final yr, which held that no governor or company can hold, management, or disburse allocations from the Federation Account supposed for native authorities councils.

The apex courtroom had additionally ordered that native governments’ allocations be despatched on to solely democratically elected LGAs.

The organisation, due to this fact, maintained that the CBN should act within the public curiosity to make sure that the 774 councils within the nation obtain their allocations instantly from the Federation Account, as ordered by the Supreme Courtroom.

It additional argued that the CBN has a constitutional and statutory obligation to guard the allocations within the Federation Account and be certain that public funds disbursed from that Account go instantly to every of the three recognised tiers of presidency.

SERAP additionally claimed that some state governors had been depriving native governments of funds and placing them in danger, regardless of the Supreme Courtroom’s binding orders.

It insisted that the blatant disregard for the Courtroom’s orders undermines the integrity of the judiciary and poses direct problem to the rule of regulation.

The organisation additional submitted that the CBN ought to facilitate compliance with the Supreme Courtroom’s orders as a result of if state governors can ignore the Courtroom, it should undermine the {bank}’s capability to credibly carry out its constitutional and statutory duties.

“We’d admire it if the beneficial measures are applied inside 7 days of receiving and/or publishing this letter. If we don’t hear from you by then, SERAP will take acceptable authorized motion to compel you and the CBN to adjust to our request within the public curiosity.

“States and the Federal Capital Territory proceed to undermine and jeopardise native governments, hindering their capability to perform successfully because the third tier of presidency envisioned beneath the 1999 Nigerian Structure (as amended).

“The CBN has a constitutional and statutory obligation to guard any tier of the federal governance construction from going extinct or being dismantled.

“Native authorities councils are the rightful house owners of their allocations from the Federation Account. States and the Federal Capital Territory now not have the precise to withhold these allocations, as they’ve persistently failed to make use of the funds to learn native authorities councils and Nigerians.

“The disbursement of native authorities allocations to the states would adversely impression poor Nigerians and exacerbate poverty.

“The CBN may play a vital function in revitalising the 774 councils throughout the nation whereas bettering residing situations for residents. The CBN mustn’t allow states to violate the Supreme Courtroom’s judgment or misuse public funds supposed for native authorities councils.

“The CBN has a duty to adjust to the Nigerian Structure and the nation’s worldwide human rights and anti-corruption obligations in performing its statutory powers and capabilities.

“Native authorities councils are entitled to direct funds from the Federation Account, representing the quantities designated for them in that Account. States shouldn’t be allowed to gather, obtain, spend, or manipulate native authorities council funds supposed for his or her profit.

“The Supreme Courtroom declared in its groundbreaking judgment that the Freedom of Data Act applies to public data within the Federation, setting a precedent for transparency and accountability in authorities funding,” SERAP acknowledged.



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