By Kazeem Ugbodaga
The Socio-Economic Rights and Accountability Project (SERAP) has taken Nigeria’s 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to court over what it described as a troubling failure to account for an estimated ₦14 trillion fuel subsidy savings received by states and the FCT since mid-2023.
In a suit filed last Friday at the Federal High Court, Lagos, SERAP is asking the court to compel the governors and the FCT minister to publicly disclose how the increased allocations from the Federation Account Allocation Committee (FAAC), arising from the removal of petrol subsidy in May 2023, have been spent.
The organisation said the lawsuit followed reports that despite trillions of naira flowing monthly to states as subsidy savings, there has been little evidence of improved access to quality healthcare, education or other essential services for poor and vulnerable Nigerians.
According to SERAP, Nigerians have a constitutional and moral right to know the projects executed with the funds, their locations, and completion reports, if any. The group warned that continued secrecy surrounding the spending of the subsidy windfall deepens public mistrust and fuels allegations of mismanagement and diversion.
In its court filings, SERAP argued that the savings from fuel subsidy removal were meant to cushion the impact of rising living costs on citizens, not to fund what it described as “lavish lifestyles of politicians,” including unnecessary foreign trips and the purchase of exotic and armoured vehicles, while poverty worsens across many states
The organisation further noted that FAAC distributed ₦28.78 trillion from subsidy removal in 2024 alone, a 79 per cent increase from the previous year, with state allocations rising by 45.5 per cent to ₦5.22 trillion.
Monthly distributions in 2025, it added, have reportedly exceeded ₦1.6 trillion. Yet, several states still owe salaries and pensions, continue to borrow to meet recurrent obligations, and deny residents access to basic public services.
SERAP maintained that transparency in managing the subsidy savings would help combat corruption, alleviate poverty and restore confidence in governance.
It cited provisions of the Nigerian Constitution, international anti-corruption obligations and a Supreme Court judgment affirming that the Freedom of Information Act applies to states and the FCT.
No date has been fixed for the hearing.
Source; PM News