Rights Group Sues Governors, Wike Over N14trn Fuel Subsidy Savings

The Socio-Economic Rights and Accountability Project (SERAP) has urged the Federal High Court in Lagos to compel the 36 state governors and the Federal Capital Territory (FCT) minister, Nyesom Wike, to account for N14 trillion in fuel subsidy savings received from Federation Account Allocation Committee (FAAC) allocations since mid-2023.

SERAP is also urging the court, in the suit marked FHC/L/MSC/1424/2025, to direct and compel the governors and Wike to disclose the details of the spending of the increased FAAC allocations being saved from the removal of fuel subsidy in May 2023.

The plaintiff is also asking the court to “compel the defendants to disclose details and the location of the projects executed, if any, with the increased FAAC allocations from the savings from the removal of fuel subsidy.

In an affidavit attached to the suit, SERAP argued that the constitutional principle of democracy provides a foundation for Nigerians’ right to know the spending details of the money collected from the savings from the removal of fuel subsidy.

The plaintiff further contended that there is a legitimate public interest for the governors and the FCT minister to urgently explain how they have spent the money they have so far collected from the subsidy savings.

SERAP also averred that the opacity in the spending of the increased FAAC allocations from fuel subsidy savings collected by the descendants would continue to have negative impacts on the fundamental interests of citizens.

The civil society organisation submitted that the savings from the removal of fuel subsidy ought to be spent solely for the benefit of the poor and vulnerable Nigerians who are bearing the brunt of the removal.

The plaintiff also claimed that millions of poor and vulnerable Nigerians have not benefited from the trillions of naira collected by the governors and the FCT minister as a result of the subsidy savings. Nigerians continue to face a worsening poverty crisis.

SERAP stated, “Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power. Section 16(2) of the Nigerian Constitution further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.

“Section 13 of the Nigerian Constitution imposes clear responsibility on public institutions, including states and FCT, to conform to, observe and apply the provisions of Chapter 2 of the Constitution.

“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.

“The Supreme Court in a groundbreaking judgment declared that the Freedom of Information Act is applicable and applies to the public records in the Federation, including those relating to the spending of the subsidy savings kept by states and the FCT.

“With the landmark judgment, the Supreme Court has made clear that state governors can no longer hide under their unfounded claim that the Freedom of Information Act does not apply to them,” SERAP maintained. No date has been fixed for the hearing of the suit.