By Muhammed Abubakar, Reporting
THE Socio-Economic Rights and Accountability Project (SERAP) has instituted a lawsuit against the 36 state governors and the Minister of the Federal Capital Territory (FCT), Abuja, Mr Nyesom Wike, over their alleged failure to account for the expenditure of about ₦14 trillion realised as fuel subsidy savings.
SERAP said the suit followed reports that state governments and the FCT have received trillions of naira from the Federation Account Allocation Committee (FAAC) since the removal of fuel subsidy in May 2023. Despite the significant increase in allocations, the organisation noted that the funds have not translated into improved access to quality healthcare, education and other basic services for poor and vulnerable Nigerians.
In the suit, marked FHC/L/MSC/1424/2025 and filed last Friday at the Federal High Court in Lagos, SERAP is asking the court to direct and compel the governors and Mr Wike to disclose detailed information on how the increased FAAC allocations, derived from fuel subsidy savings, have been spent.
Specifically, SERAP is seeking an order compelling the respondents to disclose the nature, location and status of projects executed, if any, with the funds, as well as completion reports.
According to SERAP, Nigerians have a right to know how public funds, including fuel subsidy savings, are utilised by state governments and the FCT administration.
The organisation argued that democratic principles entitle citizens to transparency and accountability in the management of public resources.
“Citizens’ right to know promotes openness, transparency and accountability, which are crucial to Nigeria’s democratic order,” SERAP said, adding that there is a legitimate public interest in requiring governors and the FCT minister to urgently explain how the subsidy savings have been spent.
SERAP warned that continued opacity in the spending of the increased FAAC allocations would have adverse consequences for citizens, particularly the poor and vulnerable who are bearing the brunt of the fuel subsidy removal.
The organisation further argued that the savings ought to be deployed solely for the benefit of disadvantaged Nigerians, stressing that transparency would help prevent what it described as a “morally repugnant result of double jeopardy” on citizens already struggling with rising living costs.
The suit, filed on SERAP’s behalf by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, stated in part that there is a significant risk of mismanagement or diversion of funds linked to the increased FAAC allocations.
It alleged that the spending details of the subsidy savings collected by several states and the FCT have largely been shrouded in secrecy, while millions of Nigerians continue to face worsening poverty.
SERAP also cited reports that some states may be spending public funds, including subsidy savings, on non-essential travels, the purchase of exotic and bulletproof vehicles, and other expenditures that support the lavish lifestyles of politicians, rather than addressing pressing social needs.
The organisation noted that despite the trillions of naira received, many states reportedly owe civil servants’ salaries and pensions, with some still borrowing to meet wage obligations.
Access to basic public services, it added, remains poor in several states and the FCT.
SERAP argued that compelling states and the FCT to disclose details of the spending would enable Nigerians to scrutinise public finances and hold officials accountable, thereby strengthening transparency and public trust.
According to the suit, the Federation Account Allocation Committee distributed ₦28.78 trillion in 2024 from petrol subsidy removal to the three tiers of government, representing a 79 per cent increase from the previous year. State governments’ allocations reportedly rose by 45.5 per cent to ₦5.22 trillion, with monthly distributions in 2025 exceeding ₦1.6 trillion.
Despite this, SERAP maintained that poor and socially vulnerable Nigerians have not benefited from the increased public funds.
The organisation cited constitutional provisions, including Sections 13, 15(5) and 16(2) of the 1999 Constitution (as amended), which mandate public institutions to abolish corruption, manage resources for the common good and adhere to the principles set out in Chapter Two of the Constitution.
SERAP also referenced Nigeria’s obligations under the United Nations Convention against Corruption, as well as a landmark Supreme Court judgment affirming that the Freedom of Information Act applies to public records across the federation, including those held by state governments and the FCT.
According to SERAP, the apex court’s ruling makes it clear that governors can no longer claim that the Freedom of Information Act does not apply to them.
No date has yet been fixed for the hearing of the suit.
What's your reaction?
