SERAP sues CBN for non-disclosure of local government allocations

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN), seeking a court order to compel the bank to disclose details of direct payments made to the 774 local government councils in Nigeria, including the specific amounts sent to each.

This legal action follows a landmark Supreme Court judgment in July 2023, which ruled that funds from the Federation Account must be paid directly to democratically elected local councils, and that state governors have no authority to withhold or manage these allocations.

In the suit (FHC/L/MSC/521/2025) filed last Friday at the Federal High Court in Lagos, SERAP is also asking the court to compel the CBN to confirm whether such direct payments have been made to local councils in Rivers State and to provide justification for those actions.

According to a statement by SERAP Deputy Director, Kolawole Oluwadare, the CBN has a constitutional and statutory duty to promote transparency and accountability by disclosing these transactions. The organization argues that failure to comply with the Supreme Court’s ruling undermines the rule of law and puts the existence of local governments at risk.

“State governors continue to starve local governments of funds in defiance of the Supreme Court’s decision,” the statement said, warning that this practice erodes the legitimacy of the judiciary and threatens Nigeria’s federal structure.

SERAP further contends that the CBN must act in the public interest by ensuring compliance with the court’s directive and protecting public funds from misuse. The group emphasized that local councils are legally entitled to their share of the Federation Account and that any interference by state authorities is unconstitutional.

The suit, filed by lawyers Kolawole Oluwadare and Oluwakemi Oni, highlights the need for the CBN to adhere to its obligations under the Nigerian Constitution, the Freedom of Information Act, and international human rights and anti-corruption commitments.

According to SERAP, “The direct disbursement of funds to local councils is essential to improving governance at the grassroots, reducing poverty, and protecting the rights of Nigerians living in those communities.”