Wike, Governors Sued Over ‘Missing’ N40trn

The Socio-Economic Rights and Accountability Project (SERAP) has sued the 36 governors in Nigeria and the Minister of the Federal Capital Territory (FCT), Abuja, Nyesom Wike over their failure to account for the alleged missing N40 trillion federal allocations meant for local governments in the states and the FCT.

SERAP disclosed this on Sunday in a statement made available to THE WHISTLER.

Recall that the organisation had in January given the governors and Wike ultimatum, to make public details of the LGAs allocations.

SERAP had warned that if appropriate actions were not taken with regards to its requests within seven days, it would consider legal actions to compel Wike and the governors

In the suit number FHC/ABJ/CS/231/2024 filed last Friday at the Federal High Court, Abuja, SERAP is asking the court to direct and compel the governors to publish details of LGA allocations and actual disbursement of the allocations to local governments in their respective states from 1999 to date.

SERAP is also asking the court to compel and direct Wike to publish details of federal allocations meant for the Area Councils in the FCT and the actual disbursement of the allocations to the Area Councils in the FCT from 1999 to date.

According to the organisation, there is lack of transparency in the actual disbursement of federal allocations to the LGAs in the states and FCT.

SERAP noted that states and the FCT have over the years failed to disclose the portion of federal allocations that are disbursed to local governments.

SERAP is also arguing that transparency in the actual disbursement and spending of federal allocations meant for local governments is fundamental to increase accountability, prevent corruption, and build trust in democratic institutions, and strengthen the rule of law.

The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare, Kehinde Oyewumi and Andrew Nwankwo, read in part: “Opacity in the amounts of federal allocations actually disbursed to local governments in the states and FCT has continued to have negative impacts on the fundamental interests of the citizens.”

“The constitutional principle of democracy provides a foundation for Nigerians’ right to know details of spending of public funds. Citizens’ right to know promotes openness, transparency, and accountability that is in turn crucial for the country’s democratic order.”

“The Nigerian Constitution, Freedom of Information Act, and the country’s international obligations rest on the principle that citizens should have access to information regarding their government’s activities.”

“Implicit in the freedom of expression is the public’s right to know what governments are doing on their behalf, without which truth would languish and people’s participation in government would remain fragmented.”

“Combating the corruption epidemic in the spending of federal allocations meant for local government areas in the states and FCT 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.”

“According to our information, the 36 states in Nigeria and the federal capital territory, Abuja, have collected over N40 trillion federal allocations meant for the 774 local governments 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 the states and FCT. States and the FCT have over the years failed and/or refused to disclose the portion of federal allocations that are disbursed to local governments.”

“Former president Muhammadu Buhari recently alleged that state governors routinely pocket or divert federal allocations meant for local governments 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.’”