N40 Trillion Question: SERAP Seeks Judicial Intervention in LGA Allocation Scandal
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against Nigerian governors and the Minister of the Federal Capital Territory (FCT), Abuja, Mr. Nyesom Wike, over their failure to account for the alleged missing N40 trillion in federal allocations intended for local governments in the states and the FCT.
This legal action follows revelations by former President Muhammadu Buhari, who in December 2022 stated, “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 for N100 million. The chairman will pocket the balance and share it.”
Filed last Friday at the Federal High Court, Abuja, under the case number FHC/ABJ/CS/231/2024, SERAP requests the court to direct and compel the governors to disclose details of local government area (LGA) allocations and the actual disbursement of these allocations to local governments in their respective states from 1999 to the present.
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Similarly, SERAP asks the court to compel Mr. Wike to publish details of federal allocations meant for the Area Councils in the FCT and the actual disbursement of these allocations from 1999 to date.
The suit argues that the Nigerian Constitution of 1999 (as amended), the Freedom of Information Act, and the African Charter on Human and Peoples’ Rights impose transparency obligations on the governors and Mr. Wike to disclose the details of LGA allocations and their disbursement in their states and the FCT.
Filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Kehinde Oyewumi, and Andrew Nwankwo, the suit notes that opacity in the amounts of federal allocations actually disbursed to local governments has had negative impacts on the fundamental interests of citizens.
It states, “The governors and Mr. Wike have a legal responsibility to promote transparency and accountability in the actual disbursement and spending of federal allocations meant for local government areas in the states and the FCT and to ensure that the allocations are duly and fully disbursed to the local governments.”
Despite Nigeria’s enormous oil wealth, the average Nigerian has seen little benefit, largely due to widespread corruption and a culture of impunity among perpetrators.
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“Combating the corruption epidemic in the spending of federal allocations meant for local government areas in the states and the FCT would alleviate poverty, improve access of Nigerians to basic public goods and services, and enhance the ability of the local governments to effectively and efficiently discharge their constitutional and statutory responsibilities,” the suit adds.
According to SERAP, the 36 states of Nigeria and the FCT have received over N40 trillion in federal allocations intended for the 774 local government areas in the country and the FCT.
In November 2023 alone, the Federation Account Allocation Committee (FAAC) disbursed N225.21 billion in federal allocations to states for local governments. In December 2023, states collected N258,810,449,711.47 in federal allocations meant for local government areas.
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However, there has been a lack of transparency in the actual disbursement of federal allocations to local government areas in the states and the FCT, with states and the FCT failing or refusing to disclose the portions of federal allocations disbursed to local governments.
Former President Muhammadu Buhari recently alleged that state governors routinely pocket or divert federal allocations intended for local government areas in their states.
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