The Socio-Economic Rights and Accountability Project (SERAP) has initiated a decisive move to enforce a landmark Supreme Court judgment that revolutionizes the financial autonomy of local government areas (LGAs) in Nigeria. SERAP has formally requested the Central Bank of Nigeria (CBN) to transparently disclose whether it has begun directly disbursing allocations to the 774 LGAs, bypassing state governors, as mandated by the court. This demand comes after the Supreme Court declared unconstitutional the long-standing practice of state governors controlling and distributing LGA funds, a practice that has historically undermined local governance and development. SERAP’s letter to the CBN Governor, Mr. Olayemi Cardoso, emphasizes the urgency of this disclosure and demands a detailed breakdown of any payments already made, especially to LGAs in Rivers State, which has been a focal point of this issue.
At the heart of SERAP’s action is the Supreme Court’s unequivocal ruling that LGAs have a constitutional right to receive their allocations directly from the Federation Account, free from gubernatorial interference. The Court affirmed that no governor or agency possesses the authority to tamper with funds designated for LGAs. SERAP argues that this judgment must be implemented without delay to empower local governments and ensure they can effectively function as the third tier of government. The organization expresses deep concern that despite the court’s ruling, some governors continue to starve LGAs of resources, jeopardizing their autonomy and hindering their ability to deliver essential services to their communities. This financial strangulation, SERAP contends, undermines the very foundation of local governance and impedes development at the grassroots level.
The organization’s letter serves as a seven-day ultimatum to the CBN. Failure to comply with the request for information within that timeframe, SERAP warns, will result in legal action to compel the bank to uphold the Supreme Court’s decision and ensure the direct disbursement of funds to LGAs. SERAP invokes a past statement by former President Muhammadu Buhari, who highlighted the alleged misappropriation of LGA funds by governors, further underscoring the urgency and importance of ensuring financial transparency and accountability at the local government level. This alleged practice of governors receiving full allocations while only remitting a fraction to the LGAs necessitates robust oversight and reinforces the significance of the Supreme Court’s ruling.
SERAP asserts that the CBN bears a constitutional and statutory responsibility to safeguard the financial interests of all tiers of government, including the local government areas. The organization argues that the CBN must act in the public interest to protect the allocations within the Federation Account and ensure the direct disbursement of these public funds to each of the three tiers of government as recognized by the Constitution. Highlighting the March 2025 revenue distribution by the Federation Account Allocation Committee (FAAC), SERAP questions whether LGAs received their rightful share directly, in accordance with the court’s mandate. The FAAC distribution, totaling N1.578 trillion, underscores the substantial financial resources at stake and the potential impact of ensuring that these funds reach the intended beneficiaries.
SERAP emphasizes the broader implications of this issue, particularly in light of the upcoming 2027 general elections. The organization contends that ensuring unrestricted direct disbursement of allocations to the 774 LGAs is crucial not only for compliance with the Supreme Court’s order but also to prevent state governors and the FCT Minister from manipulating these funds for political gain. This concern highlights the potential for financial mismanagement and corruption to influence electoral outcomes, undermining the democratic process. SERAP’s vigilance in this regard underscores the importance of financial transparency and accountability in ensuring free and fair elections.
Finally, SERAP grounds its demands in the principles of transparency and accountability, emphasizing the public’s right to know how government funds are managed. Citing the Nigerian Constitution, the Freedom of Information Act, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights, SERAP asserts that the public interest in accessing this information overrides any potential reasons for withholding it. The organization argues that the Freedom of Information Act specifically applies to public records held by institutions like the CBN, further reinforcing the public’s right to access this crucial financial information. This commitment to transparency underscores SERAP’s dedication to promoting good governance and holding public institutions accountable for their actions.
