The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for allegedly failing to disclose whether it has complied with a Supreme Court judgment mandating the direct disbursement of funds to the 774 local government councils across the country.

The suit, filed at the Federal High Court in Lagos and marked FHC/L/MSC/521/2025, seeks to compel the CBN to reveal details of any direct payments made to local councils since the judgment was delivered in July 2024.

The ruling declared that state governors and the Federal Capital Territory minister have no constitutional authority to retain or manage funds meant for local government councils from the Federation Account.

SERAP is also asking the court to compel the CBN to state whether direct disbursements have been made to local councils in Rivers State and to explain the rationale behind such payments if they have occurred.

In its application, SERAP argues that access to the details of any disbursement is essential for ensuring transparency and accountability.

“The CBN should make it possible for citizens to have access to the details of any direct payments to the 774 local government councils to ensure transparency and accountability, and judge whether the CBN and other agencies are complying with the Supreme Court judgment,” the organisation stated.

The group contends that the CBN has a constitutional responsibility to enforce compliance with the Supreme Court ruling and to protect local governments from financial marginalisation.

“The CBN has a constitutional and statutory duty to protect the allocations in the Federation Account and the public funds disbursed from that Account directly to each of the constitutionally recognised three tiers of government,” SERAP argued.

It further noted that “states and the FCT have continued to undermine and endanger the existence of local governments and their ability to effectively function as the third tier of government as envisioned under the Nigerian Constitution.”

SERAP also stressed that the CBN must act to ensure that public funds are used for their intended purpose. “The disbursement of the allocations meant for the 774 councils to states would be at the expense of poor Nigerians and continue to undermine the rights and well-being of those at the bottom of the economy and exacerbate the growing poverty in the country.”

Referring to a statement made by former President Muhammadu Buhari in December 2022, SERAP recalled: “If the money from the Federation Account to the State is about N100 million, N50 million will be sent to the chairman, but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with.”

The organisation also pointed to reports indicating that, since the Supreme Court’s decision, the 774 local government councils have opened dedicated accounts with the CBN to facilitate direct transfers from the Federation Account. However, it insists that the bank must confirm whether it has begun making such payments.

Citing the Supreme Court’s ruling and Nigeria’s legal obligations under the Freedom of Information Act, SERAP stated: “The Supreme Court in a groundbreaking judgement, declared that the Freedom of Information Act is applicable and applies to the public records in the Federation, including those kept by the CBN.”

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their public institutions’ activities,” SERAP said.

The suit was filed on behalf of SERAP by its legal representatives, Kolawole Oluwadare and Oluwakemi Oni. The group maintains that disclosure by the CBN is necessary not only to enforce the Supreme Court’s decision but also to ensure the long-term viability of the local government system in Nigeria.