The Socio-Economic Rights and Accountability Project (SERAP) has initiated legal proceedings against the Central Bank of Nigeria (CBN) over the alleged non-disclosure of direct payments made to the 774 local government councils in Nigeria. This action follows a Supreme Court judgment from July 2024, which mandated that allocations from the Federation Account should be directly disbursed to democratically elected local government councils, prohibiting governors from controlling these funds.

SERAP's suit, numbered FHC/L/MSC/521/2025 and filed at the Federal High Court in Lagos, seeks to compel the CBN to reveal details of any direct payments to the 774 local government councils, including amounts sent to each council since the Supreme Court's ruling. Additionally, SERAP requests the court to direct the CBN to disclose whether any direct payments have been made to local government councils in Rivers State and to explain the rationale for any such payments.

SERAP argues that access to these details is essential for ensuring transparency and accountability, enabling citizens to assess whether the CBN and other agencies are complying with the Supreme Court judgment. They contend that the CBN has a constitutional duty to ensure that the 774 councils directly receive their funds from the Federation Account, as ordered by the Supreme Court, and to prevent any governance that contravenes the Nigerian Constitution.

The organization emphasizes that state governors are allegedly depriving local governments of funds, undermining the Supreme Court’s binding orders and challenging the rule of law. SERAP believes that granting the reliefs sought would promote the values and principles of the Nigerian Constitution and an open democratic society.

SERAP's legal representatives, Kolawole Oluwadare and Oluwakemi Oni, filed the suit, asserting that the CBN should facilitate compliance with the Supreme Court's orders and that failure to do so would undermine the bank's ability to perform its statutory duties. They argue that states and the FCT have continued to undermine the functionality of local governments as the third tier of government.

SERAP also highlights the CBN's constitutional duty to protect allocations in the Federation Account and ensure that public funds are used for their intended purpose. They caution that disbursing allocations meant for the 774 councils to states would harm poor Nigerians, exacerbate poverty, and undermine their rights and well-being.

Referring to a statement by former President Muhammadu Buhari in December 2022, SERAP recalls concerns about funds being misappropriated at the local government level. The organization also points to reports indicating that the 774 local government councils have opened dedicated accounts with the CBN to facilitate direct transfers from the Federation Account, but insists on confirmation of whether such payments have commenced.

Citing the Freedom of Information Act and Nigeria’s anti-corruption and human rights obligations, SERAP argues that citizens should have access to information regarding public institutions' activities. They maintain 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.