The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) for failing to disclose details of direct payments made to Nigeria’s 774 local government councils, including the specific amounts sent to each council.
The legal action follows a landmark Supreme Court ruling in July 2024, which mandated that allocations from the Federation Account held by the CBN must be paid directly to democratically elected local government councils. The court emphasized that no state governor has the authority to withhold, control, or use funds meant for these councils.
SERAP’s Deputy Director, Kolawole Oluwadare, announced the suit in a statement on Sunday.
Filed last Friday at the Federal High Court, Lagos (case number FHC/L/MSC/521/2025), SERAP is asking the court to compel the CBN to disclose:
- Details of any direct payments made to all 774 local government councils since the Supreme Court ruling
- Whether any direct payments have been made to local governments in Rivers State, and if so, the rationale behind such payments
SERAP argues that public access to this information is essential for transparency and accountability, allowing citizens to assess whether the CBN and other agencies are complying with the Supreme Court’s decision.
The organisation further stated, “Granting the reliefs sought will promote the values and principles underpinning the Nigerian Constitution (1999, as amended) and are vital for a functioning democratic society.”
Highlighting ongoing challenges, SERAP criticized state governors for continuing to withhold funds from local governments despite the Supreme Court’s binding order. It warned that this disregard undermines the court’s authority and the rule of law.
The lawsuit, represented by lawyers Kolawole Oluwadare and Oluwakemi Oni, stresses that the CBN must support enforcement of the court’s orders. “If state governors continue to ignore the ruling, it will impair the CBN’s ability to fulfill its statutory responsibilities credibly,” the suit reads.
SERAP emphasized the constitutional role of the CBN to safeguard allocations in the Federation Account and ensure funds are properly disbursed directly to the three tiers of government.
The group noted that since the Supreme Court ruling, the 774 local governments reportedly opened dedicated accounts with the CBN to receive their allocations directly.
Recalling a 2022 statement by former President Muhammadu Buhari, SERAP highlighted longstanding concerns about fund misappropriation at the local government level.
Finally, SERAP referenced the Federation Account Allocation Committee’s (FAAC) March 2025 revenue distribution, which totaled ₦1.578 trillion among the federal, state, and local governments.
