SERAP Sues CBN Over Non-Disclosure of LG Allocations After Supreme Court Ruling

• SERAP has sued the Central Bank of Nigeria (CBN) for failing to disclose details of direct payments to Nigeria’s 774 local government councils, following a Supreme Court ruling mandating direct payments to councils.

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) over its failure to disclose details of direct payments to the 774 local government councils in Nigeria.

This action follows a landmark Supreme Court judgment last year mandating that allocations from the Federation Account must be paid directly to democratically elected local government councils, not controlled by state governors.

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In a suit filed at the Federal High Court in Lagos, SERAP seeks a court order compelling the CBN to reveal whether any payments have been made directly to the councils, particularly those in Rivers State, and to provide a full accounting of such disbursements.

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SERAP emphasised that transparency in these payments is essential for ensuring accountability and compliance with the Supreme Court ruling.

SERAP further stressed that “state governors are starving local governments of funds and putting them in peril, despite the Supreme Court’s binding orders,” describing this as a direct challenge to the rule of law.

The group urged the CBN to act in the public interest, warning that “if state governors get away with ignoring the court, it will undermine the ability of the bank to credibly perform its statutory duties.”

According to SERAP, the CBN has a constitutional duty to protect local government allocations and ensure states do not tamper with funds meant for the councils, especially ahead of the 2027 general elections.