SERAP Threatens To Sue States Over Non-Disclosure Of Fuel Subsidy Savings

The Socio-Economic Rights and Accountability Project (SERAP) has threatened to sue state governors and the Minister of the Federal Capital Territory, Nyesom Wike, if they fail to provide details of the estimated N14 trillion in fuel subsidy savings they received from FAAC allocations.

SERAP, which gave the governors and Wike seven days to meet its demand, stated that they must also provide information about the projects funded by the money, their locations, implementation status, and any available completion reports.

The civil society organisation also urges them to outline their plans for future fuel subsidy savings expected from FAAC allocations, including details about any projects for this funding.

SERAP is further demanding that the governors and Minister publicly invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to track and monitor the spending of these fuel subsidy savings, ensuring that the funds are not misappropriated.

The organisation’s demands are contained in a Freedom of Information request dated October 4, 2025, signed by SERAP Deputy Director Kolawole Oluwadare.

It argued that the savings from removing the fuel subsidy should solely benefit the poor and vulnerable Nigerians suffering the most from the policy, and that transparency in expenditure is crucial to prevent a morally unacceptable outcome for these citizens.

SERAP maintained that there is a significant risk of mismanagement or diversion of funds linked to the increased FAAC allocations distributed to states and the FCT.

It also claimed that millions of poor and vulnerable Nigerians have not reaped the benefits from the trillions of naira gathered by governors and the FCT minister due to these subsidy savings, which have contributed to the continued deepening of the poverty crisis.

The organisation alleged that several states may also use public funds, potentially fuel subsidy savings, to finance unnecessary travel, purchase extravagant vehicles, and support politicians’ lavish lifestyles.

SERAP insisted that Nigerians have the right to know how their states and the FCT manage the savings from removing the fuel subsidy as part of their human right to information.

It stated, “Addressing the corruption epidemic surrounding these funds would alleviate poverty, enhance access to basic public services, and improve the efficiency of state governments in fulfilling their responsibilities.

“According to available information, the Federation Account Allocation Committee (FAAC) allocated N28.78 trillion in 2024 from the removal of the petrol subsidy across all 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, with monthly distributions in 2025 reportedly exceeding N1.6 trillion.

“Despite these increased funding levels, millions of poor and vulnerable Nigerians have yet to see benefits from these savings. Many states still owe salaries and pensions to civil servants, with some borrowing funds to meet payroll obligations. Consequently, countless Nigerians residing in these states and the FCT continue to face severe challenges,” SERAP stated.