Supreme Court ruling: SERAP threatens 36 governors, Wike with lawsuits if LG funds not returned

The Socio-Economic Rights and Accountability Project (SERAP) has urged Nigeria’s 36 governors and the Minister of the Federal Capital Territory, Abuja, Nyesom Wike “to immediately account for and return the local government funds they have collected over the years.”

SERAP’s call follows a landmark Supreme Court ruling that declared unconstitutional and unlawful the withholding and use of funds by 36 state governors and FCT ministers meant for the 774 local governments in the country.

In a statement on Thursday signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “We commend the Supreme Court for this groundbreaking decision that will put an end to the ongoing alleged misappropriation of several trillions of FAAC allocations or public funds meant for local governments.”

SERAP stated, “Following the Supreme Court ruling, there is now a clear legal precedent for holding regional governors and ministers accountable for the use of the regional government funds they collect.”

The statement reads in part: “Implicit in the Supreme Court ruling is the requirement for governors and the Minister of Finance to immediately account for and return funds that should belong to local governments but were withheld and used or allegedly misused by them.

“Accounting and returning LGA funds collected will build confidence in democratic institutions and strengthen the rule of law.

“The National Assembly must immediately amend the provisions of Section 162 of the 1999 Nigerian Constitution [as amended] to ensure that local government allocations from the Federation Account are paid directly to local government areas and not collected by governors and the FCT.

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“If the FCT governors and ministers fail to account and return the funds earmarked for local governments in their states and the FCT within 7 days, SERAP will consider appropriate legal actions to compel the FCT governors and ministers to comply with our request in the public interest.

“It is in the public interest for governors and finance ministers to immediately account for and return funds that have rightfully belonged to local governments in their states and local government finances since 1999.

“Accounting and returning collected local government funds will reduce poverty, increase citizens’ access to basic public goods, and enhance the ability of local governments to carry out their constitutional and statutory responsibilities effectively and efficiently.

“It would be recalled that former President Muhammadu Buhari in December 2022 had stated that, “If the money from the Federation Account to the State is about N100 million, N50 million will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the rest and share it with whomever he wants.’

“According to Buhari, ‘If the money from the Federation Account to the State is about N100 million, N50 million will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the rest and share it with whomever he wants.’”

“Nigeria’s 36 states and the federal capital territory, Abuja, have reportedly collected over N40 trillion in federal allocation meant for the 774 local government areas in the country and the FCT.

“The Federation Account Allocation Committee (FAAC) disbursed N225.21 billion federal allocation to states meant for local governments in November 2023 alone. States also collected N258,810,449,711.47 federal allocation meant for local government areas in December 2023.”

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