THIS DAWN — The Socio‑Economic Rights and Accountability Project (SERAP) has taken legal action against Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, over their alleged failure to account for the spending of ₦14 trillion in fuel subsidy savings.
The lawsuit, filed at the Federal High Court in Lagos, seeks to compel disclosure of how the funds—distributed through the Federation Account Allocation Committee (FAAC)—have been utilized since the removal of fuel subsidy in May 2023.
Background of the Case
Following the removal of fuel subsidy, FAAC allocations to states and the FCT increased significantly, with reports estimating that over ₦14 trillion has been shared since mid‑2023.
SERAP argues that despite these massive inflows, there has been little evidence of improved access to healthcare, education, or social protection for poor and vulnerable Nigerians.
The group insists that the constitutional principle of democracy guarantees citizens the right to know how public funds are spent.
By failing to provide details of projects executed and completion reports, the governors and the FCT minister have allegedly violated transparency and accountability standards.
SERAP’s Legal Demands
In suit number FHC/L/MSC/1424/2025, SERAP is asking the court to:
- Direct and compel the governors and Mr Wike to disclose details of spending from the increased FAAC allocations.
- Provide completion reports of projects funded with subsidy savings.
- Ensure that future allocations are transparently managed and reported to the public.
SERAP emphasizes that the savings from subsidy removal were intended to cushion the impact of rising fuel prices on ordinary Nigerians.
Therefore, the funds should be spent solely for the benefit of poor and vulnerable citizens.
Public Interest and Democratic Principles
The lawsuit underscores the broader principle that citizens’ right to know is central to democracy.
Transparency in public spending promotes openness, accountability, and trust in governance.
SERAP warns that opacity in managing subsidy savings risks creating a “double jeopardy” for Nigerians—bearing the pain of subsidy removal without seeing tangible improvements in public services.
Civil society groups have echoed these concerns, noting that the lack of accountability undermines confidence in government promises that subsidy removal would translate into better infrastructure and social welfare.
Implications for Governance
The case has significant implications for Nigeria’s governance and fiscal management:
Accountability: If successful, the lawsuit could set a precedent compelling public officials to disclose spending details of major allocations.
Public Trust: Transparency in subsidy savings could rebuild trust among citizens who feel shortchanged by subsidy removal.
Policy Impact: The outcome may influence how future subsidy savings or similar funds are managed, ensuring they directly benefit vulnerable populations.
Critics argue that without transparency, the increased FAAC allocations risk being diverted into patronage networks or mismanaged, perpetuating Nigeria’s governance challenges.
SERAP’s Lawsuit — Test of accountability
SERAP’s lawsuit against Nigeria’s governors and the FCT minister represents a critical test of accountability in the post‑subsidy era. With ₦14 trillion at stake, the case highlights the urgent need for transparency in public finance and the protection of citizens’ rights. As Nigeria grapples with economic hardship, ensuring that subsidy savings are used to improve healthcare, education, and social protection will be vital to restoring public trust and strengthening democratic governance.
