Serap drags CBN to court for not having revealed the details of direct payments to LGA, advice on rivers

Project of socio-economic rights and responsibilities (Serap) has dragged the central bank of Nigeria (CBN) in court for the alleged failure to disclose the details of any direct payments to the 774 councils of the local government in Nigeria, including the amounts sent to each Council after the

sentence of the Supreme Court that orders the same.

The Supreme Court last July said that allocations from the Federation account with the CBN must be paid directly to the advice of the local government elected democratically and that no governor has the power to maintain, control or use the money understood for the advice.

In the case presented by Serap with the FHC/L/MSC/521/2025 number at the High Federal Court, Lagos, the body is asking the Court of “directing and forcing the CBN to reveal the details of any direct payments to the 774 councils of the local government in Nigeria, including the amounts sent to each Council by the judgment of the Supreme Court”.

Serap is also asking the court of “directing and forcing the CBN to disseminate if a payment directed by the Federation account with the CBN has been made to the Councils of the Local Government in the state of sparrows and to explain the logic for such payment.”

In the cause, Serapi is arguing that “the CBN should allow citizens to have access to details of any direct payments to the 774 councils of the local government to guarantee transparency and responsibility and judge whether the CBN and other agencies are respecting the sentence of the Supreme Court”.

Serap is also claiming that “granting the requested findings would do a lot to promote the values ​​and principles that are the basis of the Nigerian Constitution 1999 [as amended] And they are intrinsic characteristics of an open democratic society. “

According to Serap, “state governors are starving local governments of funds and endangers, despite the binding orders of the Supreme Court. The blatant disconcerting contempt for state governors for the orders of the Supreme Court threatens the integrity of the Court and represents a direct challenge to the rule of law.”

Serap is also claiming that “the CBN should act in the public interest to ensure that the 774 advice in the country get their money directly from the account of the Federation, as ordered by the Supreme Court”.

Serap claimed that “the CBN also has the constitutional and statutory duty to ensure that no part of the Federation is governed in contrast with the Nigerian Constitution or by anyone who is not constitutionally authorized to do so”.

The case intended on behalf of Serap by his lawyers, Kolawole Oluwadare and Oluwakemi Oni, read in part: “The CBN should facilitate respect for the orders of the Supreme Court. If the state governors are ignoring the court, he will undermine the bank’s ability to credibly carry out his statutory following.”

“States and FCT have continued to undermine and endanger the existence of local governments and their ability to effectively work as a third level of the government as required by the Nigerian Constitution.”

“The CBN has the constitutional and statutory duty to protect allocations in the Federation account and public funds provided by this report directly to each of the three constitutionally recognized levels of the government.”

“The CBN also has the constitutional and statutory duty to protect any level of the Federal Governance structure to extinct or destroy”.

“The advice of the local government are legitimate owners of their assignments from the Federation account”.

“Ensure that all the restrictions against the direct disbursement of the appropriations from the Federation to the 774 councils will respect the orders by the Supreme Court and stop the States and the Federal Capital of Tampering of allocations in view of the general elections of 2027.”

“States and FCT no longer have the right to keep allocations for local governments in the Federation account as they have not been able to use allocations for the benefit of the advice of the local government and the Nigerians”.

“The disbursement of allocations intended for the councils of 774 to the states would be at the expense of the poor Nigerians and will continue to undermine the rights and well -being of those who are at the bottom of the economy and aggravate the growing poverty in the country”.

“The CBN could play an important role in revitalizing the tips of 774 in the country and improving the opportunities for the Nigerians who reside in those advice. The CBN should not allow states to act in violation of the Supreme Court sentence and do everything they want with public funds intended for local government councils.”

“The CBN has the responsibility to respect the Nigerian Constitution and the international obligations of human rights and anti -corruption of the country in the exercise of its statutory powers and functions.”

“The councils of the local government have the right to a payment directed by the account of the Federation of the amount standing to its credit in the aforementioned account of the Federation. States should not be collected, receiving, expenses or tampering with the funds of the local government council from the Federation account intended for the benefit of the councils.”

“The Supreme Court in a revolutionary sentence has declared that the Freedom of Information Act” is applicable and applies to the public registers of the Federation “, including those preserved by the CBN.”

“With the combined reading of the provisions of the Nigerian Constitution, the Freedom of Information Act 2011 and the African Charter on human rights and populations, applicable throughout Nigeria, there are obligations of transparency imposed on the CBN to widely disclose the information requested by Serap.”

“The Nigerian Constitution, the Freedom of Information Act and the anti -corruption and human rights obligations are based on the principle according to which citizens should have access to information relating to the activities of their public institutions”.

“The Supreme Court of Nigeria in the judgment of July 2024 declared the maintenance and use of the 36 state governors unconstitutional and illegal and the Minister of FCT allocations in the account of the Federation meant for the 774 local governments in the country”.

“Following the sentence, the 774 local governments opened dedicated accounts with CBN for the direct disbursement of allocations from them by the Federation account.”

“In December 2022, the former president Muhammadu Buhari said that” if the money from the federation to the state is about N100m, N50M will be sent to the president, but will sign that he received N100m. The president will pocket the balance and share it with anyone who wants to share it. “

“According to Buhari,” if the money from the state of the Federation to the State is approximately N100 million, n50 million will be sent to the president, but it will sign that it has received n100 million. The president will pocket the balance and share it with anyone who wants to share it. “

“According to reports, the Federation account allocation committee (FAAC) shared a total of N1,578 trillions between the three levels of government as revenue generated in March 2025.”