SERAP demands accountability of N14 trillion fuel subsidy savings received through FAAC allocations.

Monday, October 6, 2025 - The Socio-Economic Rights and Accountability Project (SERAP) has given Nige­ria’s 36 governors and the Minister of the Federal Capital Territory, Nyesom Wike, seven day to urgent­ly make public how they have spent the estimated N14 trillion fuel subsidy savings received through FAAC allocations.

The organisation also re­quested that they disclose details and locations of all projects executed with the funds, as well as provide implementation updates and completion reports, where available.

SERAP urged them to provide details of the plans on how subsequent fuel subsidy savings they expect to collect from FAAC allocations, including de­tails of any planned proj­ects on which the money would be spent.

SERAP also urged them to “publicly invite the Inde­pendent Corrupt Practices and other related offences Commission (ICPC) and the Economic and Finan­cial Crimes Commission (EFCC) to track and moni­tor the spending of the fuel subsidy savings collected by you, to ensure that the money is not diverted into private pockets.”

The 36 governors and the FCT minister have reportedly collected tril­lions of naira from FAAC allocations as fuel subsidy savings since mid-2023. But the increased allocations have not translated into im­proved access to basic pub­lic services, such as quality healthcare and education for poor and vulnerable Nigerians.

In the Freedom of Infor­mation requests dated Oc­tober 4, 2025, and signed by SERAP deputy director Ko­lawole Oluwadare, the or­ganisation said: “There is a legitimate public interest for governors and the FCT minister to urgently ex­plain how they have spent the money they have so far collected from the subsidy savings.”

SERAP said, “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. Transparency in the spending of the money would help to avoid a mor­ally repugnant result of double jeopardy on these Nigerians.”

The FoI requests, also reads in part: “There is a significant risk of mis­management or diversion of funds linked to the in­creased FAAC allocations collected by the states and FCT.

“The spending details of the money collected by several states and the FCT from fuel subsidy savings have been mostly shrouded in secrecy.

“Millions of poor and vulnerable Nigerians have not benefited from the trillions of naira col­lected by the governors and FCT minister from as a result of the subsidy savings. Nigerians con­tinue to face a worsening poverty crisis.

“Several states includ­ing your state are also re­portedly spending public funds which may include fuel subsidy savings to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lav­ish lifestyles of politicians.

“There are continuing reports of widespread poverty, underdevelopment and lack of access to public goods and services in sev­eral states.

“Opacity in the spend­ing of fuel subsidy savings collected by you would continue to have negative impacts on the fundamen­tal interests of the citizens and the public interest. Transparency would en­sure that public funds are not diverted into private pockets.

“We would be grateful if the recommended mea­sures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall con­sider appropriate legal ac­tions to compel your state and the FCT to comply with our request in the public interest.

“Disclosing the details of the spending of the money collected by your state as fuel savings would allow Nigerians to scruti­nise them, and to hold you to account on the spending of public funds.

“The states and FCT may have failed to trans­parently and accountably manage the allocations collected from the subsidy savings.

“Nigerians have the right to know how their states and FCT are spend­ing the savings from the removal of fuel subsidy as part of their human right to information.

“Combating the corrup­tion epidemic in the spend­ing of the money collected would alleviate poverty, im­prove access of Nigerians to basic public services, and enhance the ability of your states to effectively and efficiently discharge their responsibilities.

“According to our in­formation, the Federa­tion Account Allocation Committee (FAAC) in 2024 distributed N28.78 trillion from the removal of sub­sidy on petrol to the three tiers of government, rep­resenting a 79 percent in­crease from the previous year.

“State governments’ al­locations increased by 45.5 percent to N5.22 trillion. Monthly distributions in 2025 have reportedly ex­ceeded N1.6 trillion.

“However, despite the in­creased allocations of pub­lic funds to your state and the FCT, millions of poor and socially and economi­cally vulnerable Nigerians have not benefited from the savings.

“Many states reported­ly owe civil servants’ sala­ries and pensions. Several states continue to borrow to pay salaries. Millions of Nigerians resident in your state and the FCT continue to be denied access to basic public services.

“Several years of alle­gations of corruption and mismanagement in the spending of public funds by several states and en­trenched impunity of per­petrators have undermined public trust and confidence in governments at all lev­els.

“Section 15(5) of the Ni­gerian constitution 1999 (as amended) requires public institutions to abolish all corrupt practices and abuse of power. Section 16(2) of the Nigerian con­stitution further provides that, ‘the material resourc­es of the nation are har­nessed and distributed as best as possible to serve the common good.’

“Section 13 of the Nige­rian constitution imposes clear responsibility on public institutions includ­ing your state to conform to, observe and apply the provisions of Chapter 2 of the constitution.

“Nigeria has made legal­ly binding commitments under the UN Convention against Corruption to en­sure accountability in the management of public resources. Articles 5 and 9 of the Convention also impose legal obligations on your state and the FCT to ensure proper manage­ment of public affairs and public funds.

“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.

“The constitutional principle of democracy also provides a founda­tion for Nigerians’ right to know the spending details of the money col­lected from the savings from the removal of fuel subsidy.

“Citizens’ right to know promotes openness, trans­parency, and accountabili­ty that is in turn crucial for the country’s democratic order.

“The effective oper­ation of representative democracy depends on the people being able to scrutinize, discuss and contribute to government decision making, includ­ing on the spending of money collected by your state and FCT from the subsidy savings.”