…SERAP argued that millions of poor and socially vulnerable Nigerians have not benefited from the subsidy savings,
ABUJA, NIGERIA- The iNews Times | The Socio-Economic Rights and Accountability Project (SERAP) has instituted a lawsuit against 35 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, over their alleged failure to properly account for approximately ₦14 trillion realised as fuel subsidy savings.
Also listed as a respondent in the suit is the Office of the Accountant-General of the Federation.
SERAP alleged that following the removal of fuel subsidy in May 2023, state governors and the FCT administration have received trillions of naira in increased allocations from the Federation Account Allocation Committee (FAAC), but the funds have not translated into improved access to quality healthcare, education, and other essential services for poor and vulnerable Nigerians.
The suit, marked FHC/L/MSC/1424/2025, was filed last Friday at the Federal High Court in Lagos, according to a statement issued on Sunday and signed by SERAP’s Deputy Director, Kolawole Oluwadare.
The organisation is asking the court to order the respondents to disclose full details of how the increased FAAC allocations described as savings from the removal of fuel subsidy have been utilised since mid-2023.
Specifically, SERAP is seeking an order compelling the governors and the FCT minister to provide details of the expenditure of the increased allocations, as well as the locations and nature of projects, if any, executed with the funds.
In the suit filed by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, SERAP stated that FAAC distributed ₦28.78 trillion to the three tiers of government in 2024 from fuel subsidy savings, representing a 79 per cent increase compared to the previous year.
According to the organisation, allocations to state governments rose by 45.5 per cent to ₦5.22 trillion, while monthly FAAC disbursements in 2025 have reportedly exceeded ₦1.6 trillion.
Despite the significant increase in public funds, SERAP argued that millions of poor and socially vulnerable Nigerians have not benefited from the subsidy savings, noting that many states still owe salaries and pensions, continue to borrow to meet wage obligations, and deny residents access to basic public services.
The organisation further alleged that years of corruption, mismanagement of public funds, and entrenched impunity among perpetrators have eroded public trust and confidence in governments at all levels.
SERAP maintained that Nigerians have a constitutional right to know how public funds, including fuel subsidy savings, are spent by state governments and the FCT administration.
It argued that the savings from the removal of fuel subsidy should be used exclusively to improve the welfare of poor and vulnerable citizens who are bearing the burden of the policy.
“Compelling states and the FCT to disclose details of how the fuel subsidy savings are spent would enable Nigerians to scrutinise public expenditure and hold public officials accountable,” the organisation said.
SERAP cited relevant constitutional provisions, including Sections 13, 15(5) and 16(2) of the 1999 Constitution (as amended), as well as Nigeria’s obligations under the United Nations Convention against Corruption, in support of its demand for transparency.
It also relied on a Supreme Court judgment affirming that the Freedom of Information Act applies to public records across the federation, including records related to the spending of fuel subsidy savings by states and the FCT.
No hearing date has yet been fixed for the case.
