By Francis Odewale
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the 36 state governors and the Federal Capital Territory (FCT) administration over their alleged failure to account for an estimated ₦14 trillion in fuel subsidy savings allocated from the Federation Account Allocation Committee (FAAC).
Filed last Friday at the Federal High Court, the suit seeks an order compelling the governors and the FCT to publicly disclose how the increased FAAC allocations, arising from the removal of petrol subsidy in May 2023, have been spent.
SERAP is also asking the court to direct the authorities to publish details and locations of projects funded with the savings, alongside completion reports.
The organisation said the legal action followed reports that trillions of naira have been disbursed to states and the FCT since mid-2023 without corresponding improvements in access to healthcare, education and other basic services for poor and vulnerable Nigerians.
According to the organisation, opacity around spending has undermined transparency and accountability, raising concerns about possible mismanagement or diversion of funds.
In its arguments, SERAP maintained that Nigerians have a constitutional right to know how public funds, including subsidy savings, are utilised. It said democratic governance requires openness in public finance and that secrecy over the allocations continues to harm citizens’ fundamental interests, especially those bearing the brunt of subsidy removal.
The group further argued that subsidy savings should be deployed solely to cushion hardship among vulnerable populations, warning that a lack of transparency risks a “double jeopardy” in which citizens suffer higher costs without relief.
The suit also cited allegations that some states may be using public funds for non-essential expenditures while poverty deepens and access to public services deteriorates.
SERAP referenced constitutional provisions mandating accountability and anti-corruption, as well as Nigeria’s obligations under the UN Convention against Corruption.
It also relied on a landmark Supreme Court of Nigeria decision, which affirmed that the Freedom of Information Act applies to states and covers records relating to subsidy savings.
No hearing date has been fixed.
