Reported By Mary Udezue | Edited by: Gabriel Osa
ABUJA, Nigeria — The Socio-Economic Rights and Accountability Project (SERAP) has filed a landmark lawsuit against Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, accusing them of failing to transparently account for an estimated ₦14 trillion in fuel subsidy savings received through the Federation Account Allocation Committee (FAAC) since the fuel subsidy was removed in 2023. The action, lodged at the Federal High Court, Lagos, marks a major legal push for financial accountability amid ongoing public concern over how public funds are managed.
The suit, registered under FHC/L/MSC/1424/2025, demands that the governors and the FCT minister disclose detailed information on how the substantial funds — described by SERAP as “savings” from the removal of petrol subsidy — have been spent. According to the human rights organisation, the disclosure should include the specific projects executed with the money, their locations, and status of completion, if any, across all states and the federal capital territory.
Fuel subsidy removal has been a longstanding and highly contentious policy in Nigeria, aimed at eliminating costly government support for petrol prices and freeing up fiscal space for development. In the aftermath of the May 2023 policy shift, FAAC allocations to state governments and the FCT reportedly increased sharply — with state governments’ share rising by more than 45 per cent in 2024 and monthly distributions in 2025 regularly exceeding ₦1.6 trillion, according to SERAP’s court filings. Despite these significant allocations, the organisation argues that poor and vulnerable Nigerians have not seen commensurate improvements in access to basic services such as quality healthcare, education, infrastructure or poverty relief.
SERAP’s complaint highlights a broader transparency gap in public financial management, asserting that “the spending details of the money collected by several states and the FCT from fuel subsidy savings have been mostly shrouded in secrecy.” The suit emphasises the public’s constitutional right to information and accountability, asserting that democratic governance depends upon open access to details of how government revenues are utilised. It also notes that opacity in the use of these funds risks undermining public trust and perpetuating inequality and underdevelopment.
In its legal arguments, SERAP stresses that millions of poor and socially vulnerable Nigerians have not benefited from the promised dividend of removing the subsidy. It also claims that in many states, civil servants’ salaries and pension obligations remain unpaid and that governments continue to borrow heavily, despite large FAAC surges linked to the subsidy savings. The organisation cites constitutional provisions that require governments to use national resources to serve the common good and underscores Nigeria’s obligations under the United Nations Convention against Corruption to ensure public funds are managed transparently.
The suit also references a Supreme Court judgment affirming the applicability of the Freedom of Information Act to public records, including details of subsidy savings — a ruling SERAP says removes any basis for governors to claim exemptions from disclosure requirements. By compelling public officials to account for fuel subsidy savings, the lawsuit seeks to institutionalise transparency and accountability in managing one of Nigeria’s most significant revenue streams in recent years.
Analysts say the case could set an important precedent for how resource savings are tracked and reported in Nigeria’s federal system, especially as state governments play increasing roles in public service delivery. If successful, the action may force governors and the FCT minister to reveal the extent to which fuel subsidy savings have been directed toward tangible development outcomes — or expose potential mismanagement that, critics contend, allows funds to be diverted for other, less public purposes.
The date for the court’s first hearing has not yet been fixed, and the governors and the FCT minister have yet to publicly respond to the suit. As Nigeria prepares for the 2027 general elections, the case adds to ongoing debates on fiscal transparency, resource governance and the rights of citizens to know how public money is spent.
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