SERAP urges CBN to reveal quantities disbursed to 774 LGAs from Federation Account
The Socio-{Economic} Rights and Accountability Venture (SERAP) has referred to as on the Central {Bank} of Nigeria (CBN) to reveal whether or not it has commenced the direct disbursement of funds to the 774 native authorities areas (LGAs) within the nation from the Federation Account and to publicly launch particulars of the allocations.
In a put up made by way of its official X (previously Twitter) account on Sunday, the civic group said,
“We’ve urged the Central {Bank} of Nigeria to instantly disclose whether or not the {bank} has commenced direct cost of allocations to the 774 native governments in Nigeria from the Federation Account with the {bank}, and to publish the quantities straight despatched to every council.”
This demand follows latest public considerations over the alleged mismanagement of native authorities funds by state governors, who’ve been accused of diverting federal allocations meant for LGAs.
SERAP mentioned the decision is according to selling transparency and accountability in public finance administration, notably on the grassroots stage.
Backstory:
In July 2024, the Federal Authorities, by the Lawyer Normal of the Federation, filed a go well with on the Supreme Court docket in opposition to the 36 state governors, citing alleged misconduct within the dealing with of native authorities funds.
Within the go well with, the Federal Authorities urged the Supreme Court docket to declare that funds standing to the credit score of native governments within the Federation Account have to be paid on to the councils, quite than routed by state governments.
The federal government additionally sought “an order of injunction restraining the governors, their brokers, and privies from receiving, spending, or tampering with funds launched from the Federation Account for the good thing about native governments when no democratically elected native authorities system is in place within the states.”
The authorized motion aimed to safe a constitutional interpretation that will compel direct allocation of federal funds to LGAs, bypassing state management.
Following the Supreme Court docket’s ruling, the Federal Authorities directed all native authorities councils throughout the nation to open accounts with the Central {Bank} of Nigeria (CBN) to facilitate the direct disbursement of allocations.
What SERAP is saying:
SERAP pressured that the CBN, because the custodian of the Federation Account, has a authorized and ethical accountability to make sure transparency within the administration of public sources.
The group emphasised that disclosing the disbursement particulars wouldn’t solely enhance public belief but in addition strengthen democratic accountability on the grassroots.
The group additional urged the CBN to publish a breakdown of allocations despatched to every LGA on a month-to-month foundation and make sure the info is accessible to the general public by way of its web site and official channels.
What you need to know
The Affiliation of Native Governments of Nigeria (ALGON) has backed the federal authorities’s transfer for true autonomy for Native Governments in Nigeria.
The federal authorities, in 2024, vowed to make sure the conviction and imprisonment of any serving native authorities chairmen or councillors tampering with the Federation Accounts Allocation Committee (FAAC) allocations to the LGs.