SERAP demands CBN disclose direct LG allocations amid rising transparency concerns

The Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to publicly confirm whether it has commenced the direct disbursement of funds from the Federation Account to the country’s 774 local government areas (LGAs) and to publish full details of these allocations.

In a statement released on its official X (formerly Twitter) account on Sunday, SERAP urged the apex bank to come clean on the status of the federal government’s directive following a Supreme Court ruling that local governments must receive their statutory allocations directly, bypassing state intermediaries.

“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,” the organization stated.

The call comes amid growing concerns over alleged mismanagement and diversion of local government funds by some state governors.

There have been increasing public outcries demanding transparency and accountability in the administration of LGA finances, especially as many councils across the country struggle to carry out basic governance and service delivery.

In July 2024, the Federal Government, through the Attorney General of the Federation, filed a suit at the Supreme Court against all 36 state governors, accusing them of unlawful interference in local government finances and governance.

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The suit sought a judicial interpretation that funds accruing to LGAs in the Federation Account must be paid directly to the councils without being routed through state governments.

The Federal Government also requested an injunction preventing governors and their agents from tampering with local government funds, particularly in states lacking democratically elected local government councils. Many LGAs are currently run by state-appointed caretaker committees in violation of the constitutional requirement for elected governance at the third tier.

Following the court proceedings, the Federal Government instructed all local councils nationwide to open operational accounts with the CBN to enable seamless and transparent direct disbursement of federal allocations.

SERAP, a prominent advocate for civic accountability and public finance reform, stressed that the CBN, as the custodian of the Federation Account, bears a legal and ethical responsibility to uphold transparency in resource management.

“Publishing a breakdown of allocations sent to each LGA monthly will not only enhance public trust but also strengthen democratic accountability at the grassroots,” SERAP added.

The group also emphasized the need for the CBN to make such data easily accessible to the public through its official website and communication platforms.

Meanwhile, the Association of Local Governments of Nigeria (ALGON) has thrown its weight behind the Federal Government’s move to grant true autonomy to local governments, describing it as a necessary step to entrench good governance and ensure LGAs deliver on their mandate to the people.

In a strong warning issued earlier in 2024, the Federal Government vowed to prosecute and imprison any serving local government officials found guilty of tampering with FAAC allocations meant for grassroots development.

The push for local government autonomy and financial transparency is gaining momentum, with civic organizations, traditional leaders, and civil society backing efforts to restructure federal governance, reduce corruption, and improve service delivery at the community level.