Advocacy Group Urges Central Bank Governor to Publicly Reveal Direct Payments to Local Governments
Title: SERAP Urges CBN Governor to Reveal Direct Allocation Disbursements to Local Councils
Stop the cloak-and-dagger game, CBN! The Socio-Economic Rights and Accountability Project (SERAP) is demanding transparency from the Central Bank of Nigeria (CBN) over whether they've started directly disbursing allocations from the Federation Account to the 774 local government councils in Nigeria.
Our irreverent sources report that SERAP wants the CBN governor, Olayemi Cardoso, to spill the beans on any direct payments made to these councils, particularly in Rivers State. They're also keen to know the reasoning behind such payments.
"The CBN should take a nose dive into the public interest and make sure the 774 councils across the country get their own allocations from the Federation Account as mandated by the Supreme Court," SERAP's Deputy Director, Kolawole Oluwadare, bluntly stated in the demand letter.
This call follows the Supreme Court's historic decision last July, which ruled that no state governor or agency has the guts to control, withhold, or disburse local government allocations from the Federation Account. The ruling stated that these allocations must go straight to the elected councils for proper fund distribution.
The Supreme Court's ruling also emphasized that the CBN has a constitutional and statutory responsibility to safeguard the allocations in the Federation Account and ensure direct disbursement of these funds to the constitutionally recognized three tiers of government.
SERAP didn't mince its words, reminding the CBN that they must toe the line with the Nigerian Constitution and ensure that no part of the federation is ruled against its provisions or by those not authorized to do so.
In case you missed it, the Federation Account Allocation Committee (FAAC) dished out a whopping N1.578 trillion among the three tiers of government in March 2025[1][5]. Yet, the CBN has kept mum about whether they've begun the direct disbursement of these funds to the local governments as ordered by the Supreme Court. So, spill the tea, CBN!
Check This Out:
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- SERAP, NGE Accuse Tinubu Gov't Of Abusing Cybercrimes Act To Silence Critics***
- Naira To Dollar Today: Nigerian Currency Takes A Dive At Official Market***
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- CBN Makes Fresh Announcement On PAPSS Transactions**
- The Central Bank of Nigeria (CBN) is under scrutiny for not revealing whether they've started directly disbursing allocations from the Federation Account to Nigeria's 774 local government councils.
- SERAP's Deputy Director, Kolawole Oluwadare, has urged the CBN governor, Olayemi Cardoso, to divulge any direct payments made to these councils in specific locations like Rivers State.
- The Nigerian Constitution stipulates that the CBN should ensure direct disbursement of allocations from the Federation Account to the three tiers of government, as ordered by the Supreme Court.
- The Supreme Court's ruling last July mandated that no state governor or agency has the authority to control, withhold, or disburse local government allocations from the Federation Account.
- In the general news, the Federation Account Allocation Committee (FAAC) distributed N1.578 trillion among the three tiers of government in March 2025, yet the CBN has remained silent on whether they've initiated direct disbursement of these funds to the local governments.
- Industry watchers are keen to know if the CBN will comply with the Supreme Court's order and stop the cloak-and-dagger game on this matter.
- recently, the House of Reps has summoned the CBN governor and the finance minister over non-payment to contractors.
- In a related matter, SERAP, HEDA, and 54 other CSOs have demanded the resignation of former minister Godswill Akpabio after a court upheld electoral fraud convictions against him.
- Lastly, the value of the naira to the dollar continues to fluctuate at the official market, while the CBN records a decline in losses and makes fresh announcements on PAPSS transactions in the world of banking and insurance, policy and legislation, and business finance.
