The Socio-Economic Rights and Accountability Project (SERAP) has issued a formal call to the Central Bank of Nigeria (CBN) to clarify whether it has begun the direct disbursement of funds to the country’s 774 local government areas (LGAs) from the Federation Account and to publicly release a detailed breakdown of the allocations.

In a statement shared via its official X (formerly Twitter) account on Sunday, the civic watchdog declared, “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 demand follows growing public scrutiny and allegations of systemic mismanagement of LGA funds by state governors.

Many state administrations have been accused of diverting federal allocations intended for grassroots development, sparking calls for greater transparency and a restructured distribution model.

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

The organization stated that releasing the disbursement data would not only boost public trust but also reinforce democratic accountability at the local level.

The group further urged the apex bank to publish monthly breakdowns of allocations sent to each local government council and ensure this information is easily accessible through official channels and the bank’s website.

The push for transparency comes against the backdrop of legal efforts by the Federal Government to assert local government autonomy.

In July 2024, the Federal Government, through the Attorney General of the Federation, filed a landmark suit at the Supreme Court against all 36 state governors, accusing them of misconduct in the management of LGA funds.

The suit sought a declaration that funds standing to the credit of local governments in the Federation Account must be paid directly to the councils and not routed through the state governments.

The federal government also requested an injunction to prevent governors and their agents from accessing or spending these funds, particularly in states lacking democratically elected local government structures.

Following the Supreme Court’s ruling, the Federal Government directed all LGAs nationwide to open accounts with the Central Bank of Nigeria to enable direct payments, marking a significant shift in Nigeria’s public finance management system.

The Association of Local Governments of Nigeria (ALGON) has voiced strong support for the federal government’s push to achieve genuine local government autonomy.

In a related statement, the government in 2024 reiterated its resolve to pursue legal consequences, including imprisonment, for any serving local government officials found tampering with FAAC allocations designated for their councils.

As the new financial structure takes shape, SERAP’s demand places additional pressure on the CBN to act with full transparency and accountability, reinforcing the growing demand for good governance at the grassroots.