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The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Central Bank of Nigeria (CBN) over its alleged refusal to disclose details of direct financial disbursements to the country’s 774 Local Government Areas (LGAs), including those in Rivers State.
The case, filed at the Federal High Court in Lagos under suit number FHC/L/MSC/521/2025, seeks to compel the CBN to release comprehensive information on the funds distributed to each LGA following a key Supreme Court ruling in 2024.
In July 2024, the Supreme Court issued a landmark judgement mandating that allocations from the Federation Account be paid directly to democratically elected LGAs. The court also ruled that state governors have no legal authority to control or retain these funds.
In its petition, SERAP argued that transparency regarding these direct payments is essential for public accountability and compliance with the Supreme Court’s directive. The organisation maintained that making the information public would enable citizens to hold both the CBN and state governments accountable.
Represented by legal counsel Kolawole Oluwadare and Oluwakemi Oni, SERAP contended that their application is consistent with constitutional principles and the need to uphold democratic governance and transparency.
The group criticised governors for allegedly withholding local government funds, despite the Supreme Court’s decision, stating that such actions undermine the rule of law and the authority of the judiciary.
“The ongoing defiance by some governors not only violates the court’s ruling but threatens the constitutional structure of governance in Nigeria,” SERAP stated in court filings.
The group further insisted that the CBN is duty-bound to ensure that each LGA receives its lawful share of the national revenue directly, as prescribed by law.
According to SERAP, the CBN has both a constitutional and statutory obligation to safeguard public funds and uphold the autonomy of the country’s three tiers of government. It warned that failure to do so could contribute to the erosion of local government institutions.
SERAP also noted that with the 2027 general elections on the horizon, the need to protect local government autonomy and prevent financial interference is even more urgent.
“States and the Federal Capital Territory no longer have any constitutional basis to intercept local government funds,” the group argued. “Allowing this to continue would worsen poverty and disproportionately affect already vulnerable Nigerians.”
The lawsuit aims to reinforce financial accountability and enforce compliance with the Supreme Court’s ruling by preventing state governments from diverting funds allocated to LGAs.
This legal challenge follows a separate case filed in 2024 by the Federal Government against all 36 state governors. The federal suit, brought by the Attorney General of the Federation, sought a Supreme Court declaration mandating that all local government funds be disbursed directly from the Federation Account without state interference.
The court subsequently ruled in favour of the Federal Government, ordering LGAs to open accounts with the CBN to receive their statutory allocations directly—effectively bypassing state-level control and aiming to restore financial autonomy at the grassroots level.
