The Socio-Economic Rights and Accountability Project (SERAP) has urged the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to clarify whether the bank has begun the direct disbursement of funds from the Federation Account to Nigeria’s 774 Local Government councils. This call follows the Supreme Court’s July 2023 ruling, which mandated that only democratically elected local governments are entitled to such direct allocations.
In a Freedom of Information (FoI) request dated May 10, 2025, SERAP’s Deputy Director, Kolawole Oluwadare, specifically asked the CBN to disclose whether it has commenced the disbursements, with particular focus on allocations to local councils in Rivers State. The state has been the center of national concerns over financial autonomy and governance issues.
SERAP emphasized that its request aligns with the Supreme Court’s ruling, which prohibited state governors and their proxies from interfering with or controlling these allocations. The FoI request read:
“The CBN ought to act in the public interest to ensure that the 774 Local Government councils in the country receive their allocations directly from the Federation Account, as ordered by the Supreme Court.”
The rights group also accused state governors of obstructing the flow of funds to local councils, in violation of the Supreme Court’s directive, and warned that such actions are undermining constitutional governance. “This blatant disregard for the Supreme Court’s binding orders undermines the rule of law and poses a direct challenge to democratic and constitutional governance,” SERAP stated.
SERAP further criticized the alleged systemic financial strangulation of local governments, arguing that it exacerbates poverty, weakens grassroots institutions, and denies citizens access to essential services. “Ensuring that all restrictions against direct allocation from the Federation Account to the 774 councils are lifted will comply with the Supreme Court order and prevent state governments and the FCT from tampering with the funds ahead of the 2027 general elections,” the group warned.
The organization pointed out that the CBN has a constitutional and statutory duty to safeguard the financial integrity of all tiers of government, especially local councils. “The CBN should be facilitating compliance with the Supreme Court’s orders. If state governors continue to defy the court with impunity, it will erode public confidence in the CBN’s ability to perform its statutory responsibilities,” SERAP stated.
SERAP gave the CBN a seven-day ultimatum to respond to the request, threatening legal action if the bank fails to comply. “We would be grateful if the recommended measures are taken within seven days. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the group warned.
The rights group also referenced former President Muhammadu Buhari’s December 2022 comments, where he highlighted the alleged manipulation of local government fund allocations by some state governors. “The chairman will pocket the balance and share it with whomever he wants to share it with,” Buhari had lamented, calling attention to the deep-rooted corruption in the disbursement process.
Additionally, SERAP reminded the CBN that the Supreme Court has affirmed the applicability of the Freedom of Information Act to all public institutions, including the apex bank, making it legally bound to provide the requested information under both domestic and international anti-corruption and human rights laws.
In March 2025, the Federation Account Allocation Committee (FAAC) reported that ₦1.578 trillion was shared among the three tiers of government. SERAP is now pressing for a full disclosure of how much of that amount was directly allocated to the 774 Local Government councils.