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SERAP sues governors, Wike over failure to account for missing N40 trillion LGA allocations

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Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against Nigeria’s governors and the Minister of the Federal Capital Territory, Abuja, Mr 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.”

The suit followed the damning revelations by former president Muhammadu Buhari who in December 2022 stated that, “If the money from the Federation Account to the State is about N100m, N50m will be sent to the chairman but he will sign that he received N100 million. The chairman will pocket the balance and share it.”

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 Mr 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.”

In the suit, SERAP is arguing that, “The Nigerian Constitution 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 publish the details of LGA allocations and actual disbursement in their states and the FCT.”

SERAP is arguing that, “State governors and Mr Wike cannot hide under the excuse that the Freedom of Information Act is not applicable to their states and the FCT. The legal obligations to publish the information sought are also imposed by the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights.”

According to SERAP, “It is in the public interest and the interest of justice to grant this application. Nigerians are entitled to their constitutionally and internationally recognized human right to information.”

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.”

SERAP is also arguing that, “States and the FCT should be guided by transparency and accountability principles and proactively publish information pertaining to their actual disbursement and spending of federal allocations meant for local governments.”

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.”

“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.”

“Many 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.”

“Granting the reliefs sought would ensure transparency and accountability in the actual disbursement and spending of federal allocations in the states and FCT would also improve the enjoyment by Nigerians of their right to natural wealth and resources.”

“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 FCT and to ensure that the allocations are dully and fully disbursed to the local governments.”

“Despite the country’s enormous oil wealth, ordinary Nigerians have derived very little benefit from oil money primarily because of widespread grand corruption, and the culture of impunity of perpetrators.”

“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.’”

“Section 162(6) of Nigerian Constitution 1999 (as amended) provides that each state shall maintain a ‘State Joint Local Government Account’ into which all allocations to local government councils from the Federation Account and from the Government of the State shall be paid.”

“Section 162(5) makes it mandatory that amounts standing to the credit of the councils will be allocated to the States for the benefit of their local government councils.”

“Section 15(5) of the Nigerian Constitution requires public institutions to abolish all corrupt practices and abuse of power. Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

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How Palmpay overcame trust deficit in 12 months- MD Nwosu

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Nigerians’ trust in Palmpay, a Central Bank of Nigeria’s fintech licensed bank, has grown tremendously in the last 12 months.

The Managing Director of Palmpay Nigeria, Chika Nwosu, disclosed this recently when he appeared on  Channels TV Business Roundtable.

Recall that the CBN recently restricted Palmpay and four fintech banks from onboarding new customers.

However, Nwosu gave insights into regulatory concerns surrounding the FinTech ecosystem and said that Palmpay has come to stay within Nigeria’s banking sector.

“Whatever happens with regulation is for the good of the FinTech space in Nigeria. Initially, when we started, there was an issue of trust. However, I can tell you now that the last 1 year after the cashless policy has seen the trust start to grow”.

The Managing Director emphasized PalmPay’s unwavering support for regulators in regulating the FinTech ecosystem, underscoring that regulators want to improve the services of strong players in the FinTech space, such as PalmPay.

On the ease of doing business and how it affects PalmPay, he said:

“Doing business in Nigeria for us is difficult, but Nigerians are embracing our App and digital payment”.

When asked about the problem of failed transfers, he stressed,

“Every institution has its business strategy and infrastructure. For us and most fintechs, we have a structure that makes transactions seamless”.

Regarding the regulator’s recent onboarding policy, he stated that PalmPay agreed with the regulators on some grey areas that must be addressed.

Reassuring customers that there was no issue with using PalmPay, he emphasized, “If PalmPay completes their own today, we will start onboarding today”.

On the issue of trust and the security of the PalmPay app, he said,

“There is no day you won’t see on our app boldly written that we are licensed by the Central Bank of Nigeria (CBN) and our deposits are insured by the Nigeria Deposits Insurance Corporation (NDIC). PalmPay is here to stay”.

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Mushin LG Chairman flags off construction of Yusuf Street road, promises solar lighting

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The Mushin Local Government Chairman, Hon. Emmanuel Bamigboye on Wednesday flagged off the construction of Yusuf Street road in Papa Ajao.

The project is expected to bring relief to residents and traders in the area and is set to be completed within six months.

According to Bamigboye, the project is a fulfillment of his campaign promise to the people of Mushin, and he expressed gratitude to God for the opportunity to execute the project.

He urged residents to cooperate with the contractor and the local government to ensure the successful completion of the project.

The councillor representing the ward, Ayomide Abioye, expressed his joy and appreciation for the project, stating that it is the longest street in Papa Ajao and will bring immense benefit to the community.

Also, the Baba Oloja of Ladipo International Market, Eze Monday, also commended the Executive Chairman for the project, stating that it will make a significant impact on the development of the area.

The project includes the construction of the road and the installation of solar lighting, which is expected to enhance security and facilitate economic activities in the area.

Residents and traders in the area have been warned not to disturb the contractor or disrupt the project in any way.

Meanwhile, the traders applauded Hon. Bamigboye for demonstrating its commitment to infrastructural development and the welfare of its citizens.

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Giving back to community — Prof Oyedokun speaks on motives

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Lead Facilitator Professor of Accounting & Financial Development Founder OGE, Prof. Godwin Emmanuel Oyedokun, has disclosed that giving back to society community is his motive for pursuing his career.

He made the disclosure in an article titled “My motive for running a free professional diploma course in Forensic Accounting and Fraud Investigation is of several folds.”

He said, “Running a free professional diploma course in forensic accounting and fraud investigation is also motivated by my desire to give back to the community.

“By sharing my expertise and knowledge without any financial barriers, I am helping individuals from diverse backgrounds and financial situations to acquire valuable skills and advance their careers.”

The academic reiterated that the motive for running a free professional diploma course in forensic accounting and fraud investigation is centred around education, skill development, community service, and professional growth.

It is a way to contribute to the accounting profession, address a skill gap, and empower individuals in their pursuit of knowledge and career advancement.

According to him, “Promoting Education and Professional Development to contribute to the growth and development of the accounting profession by providing individuals with an opportunity to enhance their knowledge and skills in the specialised field of forensic accounting and fraud investigation.

“By offering this free course, i am enabling aspiring professionals to access valuable education that might otherwise be costly or inaccessible.”

The Don addressing the need for expertise in Forensic Accounting said, “In recent years, there has been an increasing demand for professionals skilled in forensic accounting and fraud investigation due to the rise in financial crimes and fraudulent activities. By offering this free course, I am helping to address this skill gap and aiding in the fight against financial fraud.”

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