The Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to disclose whether it has commenced the direct disbursement of funds to the 774 local government areas (LGAs) in the country from the Federation Account, and to publicly release details of the allocations since the declaration of financial and administrative autonomy to the LGAs by the Supreme Court.

In a post made via its official X (formerly Twitter) account on Sunday, the civil society organisation stated, “We’ve urged the Central Bank of Nigeria to immediately disclose whether the bank has commenced direct payment of allocations to the 774 local governments in Nigeria from the Federation Account with the bank, and to publish the amounts directly sent to each council.”

This demand follows recent public concerns over the alleged mismanagement of local government funds by state governors, who have been accused of diverting federal allocations meant for LGAs.

SERAP said the call is in line with promoting transparency and accountability in public finance management, particularly at the grassroots level.

In July 2024, the Federal Government, through the Attorney-General of the Federation, filed a suit at the Supreme Court against the 36 state governors, citing alleged misconduct in the handling of local government funds.

In the suit, the Federal Government urged the Supreme Court to declare that funds standing to the credit of local governments in the Federation Account must be paid directly to the councils, rather than routed through state governments.

The government also sought “an order of injunction restraining the governors, their agents, and privies from receiving, spending, or tampering with funds released from the Federation Account for the benefit of local governments when no democratically elected local government system is in place in the states.”

The legal action aimed to secure a constitutional interpretation that would compel direct allocation of federal funds to LGAs, bypassing state control.

Following the Supreme Court’s ruling, the Federal Government directed all local government councils across the country to open accounts with the Central Bank of Nigeria (CBN) to facilitate the direct disbursement of allocations.

SERAP stressed that the CBN, as the custodian of the Federation Account, has a legal and moral responsibility to ensure transparency in the management of public resources.

The organisation emphasised that disclosing the disbursement details would not only improve public trust but also strengthen democratic accountability at the grassroots.

The group further urged the CBN to publish a breakdown of allocations sent to each LGA on a monthly basis and ensure the information is accessible to the public via its website and official channels.

It will be recalled that the Supreme Court of Nigeria in July 2024 issued a landmark decision affirming the autonomy of local governments, including the illegality of caretaker committees and the direct disbursement of federal allocations to local governments.