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SERAP Urges Tinubu To Withhold States Allocations For Failing To Conduct Credible Elections

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The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu “to direct Mr Olawale Edun, Minister of Finance and Coordinating Minister of the Economy, to immediately withhold federal allocations to states that have failed and/refused to conduct credible local government elections, and to ensure that any allocations from the Federation Account is paid only to democratically elected local government councils and no other body or institution.”

The SERAP also urged him “to provide details of the number of local government councils that have directly received federal allocations and whether the councils are democratically elected, as provided for by the Nigerian Constitution 1999 [as amended] and ordered by the Supreme Court in its judgment of 11 July 2024.”

The SERAP urged him “to promptly invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to jointly track and monitor the spending of FAAC allocations by democratically elected local government councils across the country.

ALSO READ: SERAP Sues Tinubu Over Petrol Price Hike, Demands Probe Of NNPCL

In the letter dated 5 October 2024 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “Your government has the obligation to enforce the Nigerian Constitution and to prevent public wrong, including by state governors.”

The SERAP said, “A democratically elected local government council does not and should not exist at the pleasure, whims and caprice of governors or their ‘political godfathers’.”

According to the SERAP, “Your government also has the constitutional obligation to ensure accountability for the spending of federal allocations and immediate compliance with the judgment by the Supreme Court and the rule of law.”

The letter, read in part: “Local government councils are entitled to a direct payment from the Federation Account to promote good governance, people’s welfare and development of local government areas across the country.”

“Where the rule of law reigns, political expediency ought to be sacrificed on the altar of the rule of law so as to guarantee the continued existence of institutions created to promote social values of liberty, orderly conduct and development.”

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.”

“It will be entirely consistent with the rule of law to immediately withhold federal allocations to states that have failed and/refused to conduct local government elections and to ensure that any allocations from the Federation Account are paid only to democratically elected councils and no other body or institution.”

“According to our information, the Supreme Court of Nigeria recently ordered the Federal Government to forthwith directly pay funds in the Federation Account only to democratically elected local government councils and no other body or institution.”

“The court also ordered the 36 state governors to ‘ensure democratic governance at the local government level.’”

“The court ruled that state governors have no power to dissolve democratically elected local government councils within their states and replace the councils with caretaker committees. The court also made ‘an order of immediate compliance by states with the terms of this judgment.’”

“According to our information, the Chairman of the Independent National Electoral Commission (INEC), Prof. Mahmood Yakubu recently stated that ‘the conduct of Local Government elections in virtually all the States of the Federation has become mere coronation of candidates of the ruling parties. It is time to stop the coronation and conduct proper elections.’”

“SERAP is concerned that local government elections in several states are susceptible to manipulation by governors and other actors.”

“SERAP is concerned that several state governors are failing to organize local government council elections, contrary to section 7(1) of the Nigerian Constitution.”

“SERAP is also concerned about the allegations of corruption and mismanagement in the spending by governors of federal allocations meant for the local government councils in their states. Trillions of FAAC allocations received by Nigeria’s 36 states have allegedly gone down the drain.”

“The resulting human costs directly threaten the human rights of socially and economically vulnerable Nigerians.”

“Despite the increased allocation from FAAC, millions of residents in several states continue to face extreme poverty and lack access to basic public goods and services.”

“The reported removal of petrol subsidy and the flotation of the naira by the Federal Government has translated into increased FAAC allocations to states and the FCT. However, there is no corresponding improvement in the security and welfare of millions of Nigerians.”

“SERAP notes that Section 162(3)(5) of the Nigerian Constitution provides that the amount standing to the credit of local government councils in the Federation Account shall be distributed to them and be paid directly to them.”

“State governors have no power to keep, control, manage or disburse in any manner allocations from the Federation Account to local government councils.”

“By the terms of the Supreme Court judgment, the 36 state governors are restrained from further collecting, receiving, spending or tampering with local government council funds from the Federation Account for the benefit of local government councils.”

“SERAP notes that section 165 of the Nigerian Constitution and the Allocation of Revenue Act No.1 1982, stipulate that the revenues generated by the government should be credited into the federation account and disbursed monthly among the federal government, states and local governments.”

“SERAP notes that former president Muhammadu Buhari had 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 with whoever he wants to share it with.’”

“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.’”

“The 36 states in Nigeria and the federal capital territory, Abuja, have reportedly 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.”

Politics

‘Tinubu Has Put Nigeria’s Economy on Growth Path’, Says Minister Udeh

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Minister of Innovation, Science and Technology, Dr. Kingsley Udeh, has said President Bola Tinubu’s economic reforms have put Nigeria on a path towards development despite persistent inflation and hardship.

Udeh made the statement while discussing the 2027 presidential contest and the argument being advanced by supporters of the Tinubu administration.

According to the minister, the full impact of the reforms has not yet been realised, but he argued that Nigeria’s economic performance has improved compared with 2023 and 2024.

ALSO READ: Tinubu Gov’t Does Not Engage, Everybody Is Its Enemy — Ajaero

“It is not yet fully realised, but you can even tell that we are no longer as bad as we were in 2023–2024,” Udeh said.

He acknowledged that Nigerians were still dealing with inflation and economic hardship but maintained that the country had been placed on a development path.

“We know that there’s inflation. We know that there’s still hardship. But we also know that Nigeria has been put on track for development, to come out from economic hardship,” he said.

Udeh also argued that state governments now have more resources to pursue development, pointing to projects in Enugu State as an example.

“Go to Enugu State, you’ll see massive transformation,” he said, citing developments in infrastructure and transportation.

The minister further said Nigeria’s economic growth had improved from about two per cent in 2023 to around four per cent, while arguing that the increased resources available to sub-national governments could create opportunities to improve the lives of citizens.

His comments came during a wider discussion on the 2027 presidency. Udeh, who is from the South East, said he would want the presidency to go to the region at the appropriate time but stressed that presidential elections require engagement across Nigeria’s various regions.

 

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Group Tackles Atiku on NNPC Ltd’s ₦11.2tn Federation Receivables

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The dust is yet to settle on the issue of ₦11.2 trillion receivables debited to the Federation by state oil major, the Nigerian National Petroleum Company Limited (NNPC Ltd) raised by former Vice President Atiku Abubakar.

A pressure group, the Transparency Network and Public Interest Initiative has tackled the presidential candidate of the African Democratic Congress (ADC), over the questions he raised on the possibility of the fund being coded for government contractors, pipeline protection and President Bola Tinubu’s re-election campaign.

According to the group, the figure recorded in the NNPC Ltd’s accounts represents obligations owed to the company for advances and costs incurred on behalf of the Federation, rather than evidence that the money was funnelled into political activities.

Its spokesperson, Dr Ehizojie Emmanuel Anderson, made the remarks in a statement issued in Abuja on Monday.

Recall that Atiku, running the presidency under the ADC had called for greater disclosure concerning the ₦11.2 trillion recorded in NNPC Ltd’s 2025 accounts as other receivables from the Federation.

In a statement issued on his behalf by the Director of Strategic Communication of the ADC Presidential Campaign Council, Phrank Shaibu, the former Vice President asked the national oil company to disclose how much of the receivables related to protecting Nigeria’s oil and gas infrastructure, the payments made, contractors involved and services provided.

He separately raised questions about whether government contractors had provided financial or material support to Tinubu’s re-election activities.

The allegations of a connection between government contracts and political campaign financing have not been independently established.

Responding to Atiku’s comments, Anderson argued that the accounting treatment of the ₦11.2 trillion needed to be distinguished from payments made to individual contractors.

“These are not hidden campaign funds. They are recorded Federation obligations, disclosed by the company itself, accumulated over time, and tied to advances and the cost of protecting national oil and gas assets under an approved framework,” Anderson said.

He accused the former Vice President of politicising the NNPC Ltd’s financial disclosures and said scrutiny of the national oil company’s operations should be based on its accounts and other documentary evidence.

The NNPC Ltd’s 2025 financial statements recorded approximately ₦11.2 trillion under other receivables from the Federation.

The company’s accounts describe such receivables as relating to advances to the Federation and costs incurred in securing the country’s oil and gas assets.

The figure does not, by itself, establish that ₦11.2 trillion was paid to pipeline surveillance contractors.

Atiku’s argument was that the aggregate figure did not provide sufficient detail to determine how much was specifically spent on pipeline security, who received payments and what results were achieved.

The Transparency Network maintained that NNPC’s disclosure of the receivables showed that the transactions were captured in its financial records.

READ ALSO: Atiku Blows Lid on NNPC Ltd’s ₦11.2trn Receivables, Pipeline Contracts

Anderson also defended the company’s management under Group Chief Executive Officer Bayo Ojulari, arguing that the publication of financial information should encourage evidence-based scrutiny of its operations.

He said the ₦11.2 trillion figure should not be interpreted as evidence of campaign financing without documentary proof establishing such a connection.

“A man who has read the report would not be asking Nigerians to treat a multi-year receivable as proof that NNPC is bankrolling a political campaign,” Anderson said.

Atiku’s statement, however, sought a more detailed disclosure of the components of the receivable and separately questioned the relationship between government contractors and political campaign financing.

He specifically called for the publication of relevant contracts, payment records, procurement information and outcomes associated with oil and gas infrastructure protection.

The former Vice President also raised questions about Tantita Security Services, which has been involved in pipeline surveillance, and demanded disclosure of any financial or material support government contractors may have provided to Tinubu’s re-election activities.

The Transparency Network rejected attempts to draw a connection between the NNPC Ltd’s receivables and political campaign financing without evidence.

Anderson said the company’s reforms under Ojulari should instead be assessed against its financial disclosures, operating performance and compliance with applicable accountability requirements.

“The attack on the oil giant is unnecessary and unwarranted,” he said.

The group also criticised Atiku’s previous position on restructuring and private-sector participation in the national oil industry, while arguing that the NNPC Ltd should be allowed to continue its current reforms.

It called for public debate over the company’s finances to focus on documented expenditure, contractual arrangements and audited financial information rather than political allegations.

The dispute places renewed attention on the level of detail contained in the NNPC Ltd’s financial disclosures.

While the company’s accounts identify the broad nature of its receivables from the Federation, Atiku has argued that Nigerians should be provided with a more detailed breakdown of expenditure associated with protecting oil and gas infrastructure.

The Transparency Network, on the other hand, maintains that the existence of the receivable in the NNPC Ltd’s accounts should not be presented as evidence of political campaign financing without further proof.

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Atiku Blows Lid on NNPC Ltd’s ₦11.2trn Receivables, Pipeline Contracts

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Nigeria’s former Vice-President, Atiku Abubakar has decried the whooping sum of ₦11.2 trillion receivables debit to the Federation Account as expenditure on pipeline security and payments to contractors by the Nigerian National Petroleum Company Limited (NNPC Ltd).

Alleging that the large sums were being diverted to electioneering campaigns, Atiku, the African Democratic Congress (ADC) presidential candidate, called on President Bola Tinubu to disclose details of the transactions.

Specifically, Atiku demanded the publication of contracts, payment records and project outcomes linked to oil and gas infrastructure protection.

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In a statement issued on Sunday by Phrank Shaibu, Director of Strategic Communication of the ADC Presidential Campaign Council, Atiku questioned how much of the amount was spent on pipeline surveillance, the beneficiaries of the payments and the results achieved.

“NNPC’s 2024 accounts recorded roughly ₦17.5 trillion across different claims on the Federation, including petrol under-recovery and other receivables linked to advances and asset protection. Its 2025 accounts now show approximately ₦11.2 trillion in other receivables from the Federation,” he said.

Atiku said the figures did not clearly establish the amounts spent specifically on pipeline protection, urging the government to provide a breakdown of the expenditure.

He also compared the ₦11.2 trillion in receivables with the approximately ₦3.1 trillion allocated to the Ministry of Defence in 2025, arguing that Nigerians deserved greater transparency in public spending on security.

The former vice-president further called for disclosure of the contractual arrangements involving companies engaged in major infrastructure and pipeline security projects.

He specifically questioned the pipeline surveillance contract held by Tantita Security Services Nigeria Limited and the Lagos-Calabar Coastal Highway contract awarded to a company linked to the Chagoury family.

Atiku urged the government to publish relevant contract documents, bidding procedures, evaluation records and payment details to enable Nigerians to scrutinise the awards.

He also called for disclosure of any financial or material support provided by government contractors to Tinubu’s re-election activities, alleging that potential links between public contracts and political financing required clarification.

The ADC presidential candidate said transparency was particularly important amid security challenges, economic hardship and concerns about the government’s use of public resources.

He criticised the administration’s economic policies and called for measures to reduce the cost of living, improve electricity supply and strengthen public safety.

Atiku also faulted Tinubu’s recent remarks about enjoying his stay in Europe, arguing that the comments did not reflect the difficulties confronting many Nigerians.

The former vice-president said his administration, if elected in 2027, would prioritise making living costs more affordable.

The Presidency and the companies mentioned were not represented in the statement, and the allegations concerning contract awards and possible campaign financing were not independently established in the material provided.

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