‎SERAP Sues Governors, Wike over N14trn Fuel‑subsidy Savings

‎SERAP Sues Governors, Wike over N14trn Fuel‑subsidy Savings

‎The Socio-Economic Rights and Accountability Project (SERAP) has initiated a legal battle against the 35 state governors and Nyesom Wike, the Minister of the Federal Capital Territory, regarding an alleged lack of transparency over the expenditure of approximately N14 trillion in fuel subsidy savings.

This litigation, which also names the office of the Accountant-General of the Federation as a respondent, contends that while these officials have received vastly increased allocations from the Federation Account Allocation Committee since the subsidy was removed in May 2023, these funds have failed to result in better healthcare, education, or basic services for the country’s most vulnerable citizens.

According to a statement issued on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare, the suit (FHC/L/MSC/1424/2025) was filed last Friday at the Federal High Court in Lagos. Within the legal filings submitted by their counsel, Oluwakemi Agunbiade and Valentina Adegoke, the organization argued that, “The Federation Account Allocation Committee (FAAC) in 2024 distributed N28.78 trillion from the removal of subsidy on petrol to the three tiers of government, representing a 79 per cent increase from the previous year.

State governments’ allocations increased by 45.5 per cent to N5.22 trillion. Monthly distributions in 2025 have reportedly exceeded N1.6 trillion.

However, despite the increased allocations of public funds to states and FCT, millions of poor and socially and economically vulnerable Nigerians have not benefited from the savings. Many states reportedly owe civil servants’ salaries and pensions.

Several states continue to borrow to pay salaries. Millions of Nigerians resident in several states and the FCT continue to be denied access to basic public services.

Several years of allegations of corruption and mismanagement in the spending of public funds by several states and entrenched impunity of perpetrators have undermined public trust and confidence in governments at all levels.”

SERAP maintains that the Nigerian public has a fundamental right to be informed about how state governments and the FCT administration manage public wealth, particularly the savings generated from the subsidy removal.

The group asserts that these funds should be dedicated exclusively to aiding those bearing the heaviest burden of the current economic policies, stating that, “Directing and compelling states and FCT to disclose the details of the spending of the money collected as fuel subsidy savings would allow Nigerians to scrutinise them, and for public officials to account for the spending of public funds.”

To support its demands for accountability, the organization cited various legal benchmarks, including Sections 13, 15(5), and 16(2) of the 1999 Constitution (as amended), alongside Nigeria’s international commitments under the United Nations Convention against Corruption.

Furthermore, the suit relies on a specific Supreme Court precedent which affirmed that the Freedom of Information Act is applicable to public records throughout the federation, including documentation regarding how states and the FCT spend subsidy-related savingsubsidy-related saving.