N14trn subsidy savings:  SERAP sue Governors, demand full disclosure of FAAC allocations

29 Dec 2025

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the 35 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to account for about ₦14 trillion realized from fuel subsidy savings.

In a statement yesterday, SERAP joined in the suit, the Office of the Accountant-General of the Federation while calling for accountability for savings from subsidy removal.

The right group alleged that the governors and the FCT administration have received trillions of naira in increased allocations from the Federation Account Allocation Committee (FAAC) following the removal of petrol subsidy in May 2023, but argued that the funds have not translated into better access to healthcare, education and other basic services for poor and vulnerable Nigerians.

The suit, marked FHC/L/MSC/1424/2025, was filed last Friday at the Federal High Court in Lagos.

This was disclosed in a statement signed on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare.

In the application, SERAP is asking the court to compel the respondents to publicly disclose how the increased FAAC allocations, described as fuel subsidy savings, have been spent since mid-2023.

Specifically, the organisation is seeking court orders directing the governors and the FCT minister to provide details of expenditures, as well as the locations and nature of projects allegedly executed with the funds.

According to SERAP, data show that FAAC distributed about ₦28.78 trillion to the three tiers of government in 2024 following the removal of fuel subsidy, representing a 79 per cent increase compared to the previous year.

The organisation said allocations to state governments rose by about 45.5 per cent to ₦5.22 trillion, while monthly distributions in 2025 have reportedly exceeded ₦1.6 trillion.

Despite the surge in revenue, SERAP argued that millions of Nigerians have seen no meaningful improvement in their living conditions.

The group said many states still owe civil servants salaries and pensions, while several continue to borrow funds just to meet wage obligations. It added that access to basic public services remains poor in many parts of the country.

SERAP further cited persistent allegations of corruption, mismanagement of public funds and entrenched impunity at the state level as factors that have eroded public trust in government.

The organisation maintained that Nigerians have a constitutional right to know how public resources, including fuel subsidy savings, are being spent by state governments and the FCT administration.

It argued that the funds generated from subsidy removal should be used primarily to cushion the economic hardship faced by poor and vulnerable citizens who are bearing the brunt of the policy.

SERAP said compelling public disclosure of the spending would promote transparency, allow citizens to scrutinise government actions and strengthen accountability at all levels.

To support its case, the group cited relevant sections of the 1999 Constitution (as amended), Nigeria’s obligations under the United Nations Convention against Corruption, and a Supreme Court judgment affirming that the Freedom of Information Act applies to public records across the federation.

No hearing date has been fixed for the suit.