The Socio-Economic Rights and Accountability Project (SERAP) has called on the 36 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, to account for and return the local government funds they have collected over several years.
This demand follows a recent Supreme Court ruling declaring the practice of state governors and the FCT minister withholding and utilizing funds intended for local governments as unconstitutional.
In a statement on Thursday, SERAP Deputy Director Kolawole Oluwadare expressed the organization’s response to the verdict. He stated, “We applaud the Supreme Court for this groundbreaking decision which will end the persistent alleged misappropriation by several of trillions of FAAC allocations or public funds meant for local governments.”
Oluwadare emphasized that the ruling sets a clear legal precedent for holding governors and the FCT minister accountable for how they have spent the local government funds collected by them. He added, “Implicit in the Supreme Court judgment is the requirement for the governors and FCT minister to immediately account for and return the funds meant for local governments but retained and used or allegedly misused by them.”
SERAP stressed that accounting for and returning these funds would build trust in democratic institutions and strengthen the rule of law. The group warned that if the governors and FCT minister fail to comply within seven days, SERAP would consider taking appropriate legal actions to compel compliance.
The organization highlighted that it is in the public interest for the governors and the FCT minister to account for and return the funds collected since 1999. “Accounting for and returning the local government funds collected would alleviate poverty, improve access of Nigerians to basic public goods, and enhance the ability of the local governments to effectively and efficiently discharge their constitutional and statutory responsibilities.”
SERAP noted that the 36 states and the FCT have reportedly collected over N40 trillion in federal allocations meant for the 774 local government areas in the country and the FCT. In November 2023 alone, the Federation Account Allocation Committee disbursed N225.21 billion to states as federal allocations meant for local governments, while in December 2023, states collected N258,810,449,711.47 in such allocations.
SERAP’s statement underscores the urgent need for transparency and accountability in the management of local government funds to ensure they are used for their intended purposes and benefit the public.