The Socio-Economic Rights and Accountability Project (SERAP) has given Nigeria’s 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, seven days to account for an estimated ₦14 trillion in fuel subsidy savings received through Federation Account Allocation Committee (FAAC) disbursements — or face legal action.
SERAP challenges governors, Wike over subsidy funds
In a Freedom of Information (FoI) request dated 4 October 2025 and signed by Deputy Director Kolawole Oluwadare, SERAP demanded that all governors and the FCT minister disclose detailed records of how the funds were spent, including project locations, implementation statuses, and completion reports.
The organisation stressed that the ₦14 trillion collected from FAAC since mid-2023 had not translated into tangible development, noting the lack of improvement in education, healthcare, and poverty reduction across several states.
“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,” SERAP said.
“Transparency in the spending of the money would help to avoid a morally repugnant result of double jeopardy on these Nigerians.”
‘Invite ICPC, EFCC to monitor funds’
SERAP further urged governors to invite the ICPC and EFCC to track and monitor the spending of subsidy savings to ensure accountability and prevent diversion of funds.
The group alleged that many states, despite receiving substantial allocations, were still owing civil servants’ salaries and pensions, while others were reportedly spending public funds on luxury vehicles, foreign trips, and political events.
“The spending details of the money collected by several states and the FCT from fuel subsidy savings have been mostly shrouded in secrecy,” the statement read.
“Millions of poor Nigerians have not benefited from the trillions collected. Nigerians continue to face a worsening poverty crisis.”
FAAC disbursed ₦28.78trn post-subsidy removal
According to SERAP, the FAAC distributed ₦28.78 trillion from the removal of fuel subsidy to the three tiers of government in 2024 — a 79% increase from the previous year. State governments reportedly received ₦5.22 trillion, while monthly FAAC distributions in 2025 have exceeded ₦1.6 trillion.
However, SERAP expressed concern that the increased public spending had not improved access to essential services. Many states, it said, still borrow to pay wages, while citizens face rising costs of living and limited social safety nets.
SERAP invokes Supreme Court ruling
SERAP reminded the governors of a Supreme Court ruling which affirmed that the Freedom of Information Act applies to all public records, including those at the state level. It warned that any attempt to withhold subsidy spending details would amount to “blatant disregard” of the apex court’s decision.
“State governors can no longer hide under the unfounded claim that the FOI Act does not apply to them,” the group asserted.
“The judgment sends a powerful message that governors must uphold transparency and accountability.”
SERAP warns of legal action
The organisation gave a seven-day ultimatum for compliance, failing which it would initiate legal proceedings against any non-complying state.
“Disclosing the spending details will allow Nigerians to scrutinise and hold their leaders to account,” SERAP said.
“Failure to do so will compel us to seek judicial intervention in the public interest.”
Analysts urge fiscal transparency
Fiscal analysts have backed SERAP’s position, saying the post-subsidy revenue surge presents a unique opportunity for Nigeria to improve infrastructure and governance transparency — if properly managed.
They urged states to publish quarterly reports on FAAC utilisation to enhance citizens’ trust and align with the UN Convention against Corruption.