The Socio-Economic Rights and Accountability Project (SERAP), a Nigerian advocacy organization, has filed a lawsuit against the Central Bank of Nigeria (CBN) for allegedly failing to disclose details of direct disbursements to the country’s 774 local government areas. SERAP contends that this lack of transparency violates a Supreme Court ruling mandating direct payments to local councils.
The lawsuit, filed at the Federal High Court in Lagos (Suit No: FHC/L/MSC/521/2025), seeks to compel the CBN to reveal the amount of funds directly allocated to each local government from the Federation Account since the Supreme Court’s decision. SERAP is also requesting specific information on any payments made to local governments in Rivers State and the justification for those transactions.
This legal action follows a July 2024 Supreme Court judgment affirming the constitutional autonomy of democratically elected local governments and prohibiting state governors from controlling or withholding their allocated funds. The court directed that funds from the Federation Account be paid directly to local councils through the CBN.
SERAP argues that the CBN has a legal obligation to ensure transparency, uphold the Constitution, and safeguard the financial independence of local governments.
“Citizens deserve to know whether the CBN is complying with the Supreme Court’s ruling,” the organization stated, warning that continued secrecy could undermine public trust and hinder local governance.
SERAP has accused state governors of disregarding the court’s decision by depriving local councils of funds, thereby impeding development at the grassroots level.
The group asserts that the CBN must not be complicit in actions that jeopardize the functionality of local government.
“The CBN must ensure that the 774 councils receive their full allocations directly, as constitutionally mandated. Any deviation would not only violate the Supreme Court’s ruling but also harm millions of Nigerians who rely on basic services at the local level,” the statement read.
