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Subsidy Savings: SERAP Seeks Spending Details

by Olugbenga Soyele
2 years ago
in News
SERAP
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Socio-Economic Rights and Accountability Project (SERAP) has asked President Bola Ahmed Tinubu to make public his plans on how the fuel subsidy savings from the full deregulation of the petroleum downstream sector of the Nigerian economy would be spent by his government.

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SERAP also urged Tinubu to give details of specific projects on which the funds would be spent, and the mechanisms that have been put in place to ensure that any such savings are not embezzled, misappropriated or diverted into private pockets.

The civil society organisation, which made the demands in an open letter it wrote to the president, asked him to publish details of spending of about N400 billion so far saved as a result of the complete petroleum sector deregulation.

SERAP gave the government seven requests to comply with its demands or be prepared to face legal action.

In the letter dated July 1, 2023, and signed by its deputy director, Kolawole Oluwadare, SERAP insisted that the federal government has a legal responsibility to ensure that the savings from the removal of subsidy on petrol are spent solely for the benefit of the 137 million poor Nigerians who are bearing the brunt of the removal.

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It further maintained that the prevention of corruption in the spending of savings from the removal of subsidy on petrol and preventing and addressing the challenges caused by the removal are serious and legitimate public interests.

The organisation added that Nigerians have the right to know how the savings are spent, and that publishing the details of the spending of the savings would promote transparency and accountability and reduce the risks of corruption in the spending of the funds.

SERAP said it is concerned that the savings from subsidy removal may be embezzled, misappropriated or diverted into private pockets and that this will negatively impact the fundamental interests of the citizens and the public interest.

The organisation alleged that implementing the National Social Safety Net Programme (NASSP) and spending on the programme had been primarily shrouded in secrecy.

It stated: “Publishing the details of the spending of the N400bn and other savings from the removal of subsidy would also ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of the funds.

“Transparency and accountability in the spending details of the N400 be saved as a result of the removal of subsidy on petrol, and on the spending of subsequent savings from the removal would mean that the savings can help poor Nigerians to overcome the effects of such removal.

“It would also help to avoid a morally repugnant result of double jeopardy on poor and socially and economically vulnerable Nigerians.

“The lack of transparency and accountability in the spending of savings from the removal of subsidy on petrol and the resulting human costs would directly threaten fundamental human rights that your government must protect.

“Your government has the legal obligations to address the effects of subsidy removal on the human rights of 137 million poor Nigerians and to prevent and address some of the direct consequences that the removal may reap on human rights, especially given the disproportionate impact on these Nigerians”.

The organisation also urged President Tinubu to promptly instruct the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to monitor the spending of all savings from subsidy removal.

It noted that the removal of subsidy on petrol has continued to negatively and disproportionately affect poor Nigerians by undermining their right to an adequate standard of living.

SERAP further stated: “Your government has a positive obligation to protect individuals against the threat posed to human rights by the removal of subsidy on petrol. Your government also has legal obligations to address the aftermath of subsidy removal effectively.

“SERAP is seriously concerned that years of allegations of corruption and mismanagement in the spending of public funds and entrenched impunity of perpetrators have undermined public trust and confidence in governments at all levels.

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and Article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including the details of how the N400bn and other savings from the removal of subsidy on petrol would be spent.

“By the combined reading of the provisions of the Nigerian Constitution 1999 [as amended], the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on your government to widely publish the details of how the N400bn and other savings from the removal of subsidy on petrol are spent.

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their government’s activities.

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to “abolish all corrupt practices and abuse of power” in the country.

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen based on social justice and equality of status and opportunity.

“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.

“Similarly, articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your government to ensure proper management of public affairs and public funds, and to promote sound and transparent administration of public affairs”.


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