The Socio-Economic Rights and Accountability Project (SERAP) has called on the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, to disclose whether the apex bank has commenced the direct disbursement of funds from the Federation Account to the country’s 774 Local Government councils, in line with the Supreme Court judgment of July 2023.

The demand was made in a Freedom of Information (FoI) request dated May 10, 2025, and signed by SERAP’s Deputy Director, Kolawole Oluwadare.

SERAP specifically urged the CBN to make public any such disbursements, with particular focus on allocations to local councils in Rivers State, where concerns over financial autonomy and governance have drawn national attention.

The rights group stressed that its request aligns with the Supreme Court’s ruling, which declared that only democratically elected local government councils are entitled to direct allocations from the Federation Account.

The court also barred State governors and their proxies from interfering with or controlling these funds.

“The CBN ought to act in the public interest to ensure that the 774 Local Government councils in the country receive their allocations directly from the Federation Account, as ordered by the Supreme Court,” the FoI request stated.

SERAP demanded that the CBN not only clarify whether it has begun implementing the ruling, but also disclose whether any direct transfers have been made to local governments in Rivers State.

The organisation accused state governors of starving local councils of funds, flouting the court’s directives and thereby undermining constitutional governance.

“This blatant disregard for the Supreme Court’s binding orders undermines the rule of law and poses a direct challenge to democratic and constitutional governance,” SERAP said.

It also decried the alleged systemic financial strangulation of local governments, stating that such practices have worsened poverty, weakened grassroots institutions, and denied citizens access to essential services.

“Ensuring that all restrictions against direct allocation from the Federation Account to the 774 councils are lifted will comply with the Supreme Court order and prevent state governments and the FCT from tampering with the funds ahead of the 2027 general elections,” the group warned.

SERAP argued that the CBN has a constitutional and statutory duty to protect the financial integrity of all tiers of government, particularly the local councils.

It warned the bank against being complicit in efforts to erode local governance structures by failing to enforce legal mandates.

“The CBN should be facilitating compliance with the Supreme Court’s orders. If state governors continue to defy the court with impunity, it will erode public confidence in the CBN’s ability to perform its statutory responsibilities,” the organisation stated.

SERAP gave the CBN a seven-day ultimatum to respond to its request or face legal action.

“We would be grateful if the recommended measures are taken within seven days. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” it warned.

Citing former President Muhammadu Buhari’s December 2022 remarks, the organisation recalled that many governors reportedly compel Local government chairmen to sign for full allocations while releasing only a portion to them.

“The chairman will pocket the balance and share it with whomever he wants to share it with,” Buhari had lamented, highlighting the entrenched corruption in the disbursement process.

SERAP also reminded the CBN that the Supreme Court has affirmed the applicability of the Freedom of Information Act to all public institutions, including the apex bank.

It argued that the CBN is legally bound to provide the requested information under both domestic and international anti-corruption and human rights laws.

In March 2025, the Federation Account Allocation Committee (FAAC) reported that ₦1.578 trillion was shared among the three tiers of government.

SERAP is now pressing for full disclosure on how much of that sum was directly allocated to the 774 Local Councils.