News
SERAP Calls on Govs, Wike to Account for N40trn LGA Allocations
Socio-Economic Rights and Accountability Project (SERAP) on Sunday called on the 36 state governors in Nigeria and Mr Nyesom Wike, minister of the Federal Capital Territory (FCT), Abuja, to “disclose details of federal allocations meant for Local Governments in your state and the FCT and the actual disbursement of the allocations to the local governments since the return of democracy in 1999.”
Nyesom Wike, minister of FCT
of FCT
SERAP also asked the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to investigate the actual disbursement and spending of federal allocations meant for local governments in states and the FCT since May 1999.
This was contained in a freedom of information request dated 27 January and signed by Kolawole Oluwadare, SERAP deputy director.
The organisation said Nigerians have the right to know the details of actual disbursement and spending of federal allocations in the states and the FCT.
The FOI request read in part: “We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel you your state, and the FCT to comply with our requests in the public interest.
“Transparency would ensure that the allocations are not diverted into private pockets, and increase public trust that the money would be used to benefit Nigerians resident in these local government areas.
“SERAP is seriously concerned that years of allegations of corruption and mismanagement of federal allocations meant for local governments have contributed to widespread poverty, underdevelopment, and lack of access to public goods and services in several states.
“You have a legal responsibility to promote transparency and accountability in the actual disbursement and spending of federal allocations meant for local government areas in your state and to ensure that the allocations are fully disbursed to the local governments.
“According to our information, the 36 states in Nigeria and the federal capital territory, Abuja, have collected over N40 trillion in federal allocations meant for the 774 local government areas in the country and FCT.
“The Federation Account Allocation Committee (FAAC) disbursed to states N225.21 billion federal allocations meant for local governments in November 2023 alone. States also collected N258,810,449,711.47 federal allocations meant for local government areas in December 2023.
“However, there is opacity in the actual disbursement of federal allocations to the local government areas in your state. States and the FCT have over the years failed and/or refused to disclose the portion of federal allocations that are disbursed by state governors.
“SERAP notes that former president Muhammadu Buhari recently alleged that state governors routinely pocket or divert federal allocations meant for local government areas in their states.
“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 balance and share it with whoever he wants to share it with.’”
British High Commission in Nigeria has reiterated the strong, long-standing relationship between the United Kingdom and Nigeria following the release of the UK Immigration White Paper earlier today.
A spokesperson for the High Commission stated that the UK remains a top destination for Nigerians seeking opportunities to work, study, visit, and settle, acknowledging the valuable contributions Nigerians make to the UK economy and society.
The White Paper outlines reforms to legal migration, aimed at restoring order, control, and fairness to the system while promoting economic growth.
The spokesperson assured that changes would be gradual, with further engagement between the UK and Nigerian government officials once implementation details are finalized.
“The UK has a proud tradition as an outward-looking nation, investing and trading abroad, and welcoming the creativity, ideas, and diversity of those who come to contribute here,” the spokesperson said.
The UK government has pledged to work closely with Nigerian authorities to ensure a smooth transition as the new immigration policies take effect
Nigerian Electricity Regulatory Commission (NERC) has directed nine electricity Distribution Companies (DisCos) to compensate Band A customers residing in 557 streets across their franchise areas for failing to meet the minimum power supply requirement under the new electricity tariff regime.
According to NERC, the affected DisCos must implement compensation across 152 electricity feeders due to poor supply in April.
The compensation will be provided through electricity credit or improved power supply, as outlined in the April 2025 Multi-Year Tariff Order.
The directive affects the following DisCos:
Abuja Electricity Distribution Company (AEDC)
Eko Electricity Distribution Company (EKEDC)
Port Harcourt Electricity Distribution Company (PHED)
Kano Electricity Distribution Company (KEDCO)
Kaduna Electricity Distribution Company (KAEDCO)
Ikeja Electric (IE)
Ibadan Electricity Distribution Company (IBEDC)
Benin Electricity Distribution Company (BEDC)
Enugu Electricity Distribution Company (EEDC)
The development follows a tariff hike of over 300% for Band A customers in 2024, which mandated a minimum daily power supply of 20 hours. Despite the increase, many consumers have continued to report poor service delivery, leading to the latest compensation directive.
NERC stated that affected DisCos must upgrade power supply in designated areas or provide electricity credits to customers who experienced service failures.
Socio-Economic Rights and Accountability Project has called on the Central Bank of Nigeria to immediately disclose whether it has commenced the direct disbursement of allocations to the 774 local government areas in Nigeria, following the Supreme Court’s landmark judgment nullifying state governors’ control over LGA funds.
In a letter dated 10 May 2025 obtained by our correspondent, addressed to the CBN Governor, Mr Olayemi Cardoso, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the group also demanded that the bank “widely publish the amounts, if any, so far sent directly to each of the local governments” and provide a detailed explanation of any payments already made—particularly to LGAs in Rivers State.
The group stated: “We are writing to request you to use your good offices and leadership position to immediately disclose whether the CBN has commenced the direct disbursement of allocations to the 774 local government councils in Nigeria from the Federation Accounts with the CBN, and to widely publish the amounts, if any, so far sent to each of the local governments.”
This request follows a Supreme Court judgment declaring the practice by governors and the FCT Minister of retaining and disbursing LGA allocations unconstitutional and unlawful.
The court ruled that no governor or agency has the authority to interfere with allocations meant for LGAs from the Federation Account.
Citing this judgment, SERAP argued: “Local government councils are entitled to a direct payment from the Federation Account of the amount standing to their credit in the said Federation Account. States should not be collecting, receiving, spending or tampering with the local government council funds from the Federation Account meant for the benefit of the councils.”
The advocacy group expressed concern that despite the ruling, many state governors have continued to “starve local governments of funds and put them in peril,” thereby undermining their autonomy and capacity to function as the third tier of government.
In the letter, the group warned that if the CBN fails to act within seven days, it would take legal action.
“If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter stated.
SERAP referenced a past revelation by former President Muhammadu Buhari, who in December 2022 described how governors allegedly short-changed LGA chairmen.
“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 balance and share it with whoever he wants to share it with,” Buhari had said.
The organisation argued that the CBN has a constitutional and statutory obligation to protect the financial interests of all tiers of government.
“The CBN ought to act in the public interest to protect the allocations in the Federation Account and the public funds disbursed from that Account directly to each of the constitutionally recognised three tiers of government,” it said.
Highlighting the March 2025 revenue distribution by the Federation Account Allocation Committee, SERAP noted that a total of N1.578 trillion was shared among the three tiers of government. It queried whether the LGAs had received their fair share directly, as mandated by the court ruling.
“Ensuring that all restrictions against direct disbursement of allocations from the Federation Account to the 774 councils are lifted will comply with the orders by the Supreme Court and stop states and the FCT from tampering with the allocations ahead of the 2027 general elections,” SERAP warned.
The group further argued that Nigerians have a legal and moral right to know how their money is being managed, referencing several legal frameworks, including the Nigerian Constitution, the Freedom of Information Act, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights.
“The public interest in publishing the information sought outweighs any considerations to withhold the information. Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure,” SERAP stated.
The group also reminded the CBN that “the Freedom of Information Act is applicable and applies to public records in the Federation, including those kept by the CBN.”
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