FAAC N14trn fuel subsidy savings: SERAP sues govs, FCT minister

THE Socio-Economic Rights and Accountability Project, SERAP, has sued the 36 state governors and the Minister of the Federal Capital Territory, Abuja, Mr Nyesom Wike over their failure to account for the spending of the N14 trillion fuel subsidy savings they collected from Federation Account Allocation Committee, FAAC allocations, including details of projects executed with the money, and the completion reports on the projects.

The suit followed reports that the 36 governors and the FCT minister have collected trillions of naira from FAAC allocations as fuel subsidy savings since mid-2023.

In a suit filed on behalf of SERAP by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, last Friday at the Federal High Court sitting in Lagos, the organisation is asking the court to “direct and compel the governors and Mr Wike to disclose the details of the spending of the increased FAAC allocations being savings from the removal of fuel subsidy in May 2023.”

SERAP is also asking the court to “compel the governors and Mr Wike to disclose details and the location of the projects executed, if any, with the increased FAAC allocations from the savings from the removal of fuel subsidy.”

In the suit, SERAP said: “Nigerians ought to know in what manner public funds including fuel subsidy savings, are spent by the governors and FCT minister.

“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.

“There is a legitimate public interest for the governors and the FCT minister to urgently explain how they have spent the money they have so far collected from the subsidy savings.

“Opacity in the spending of the increased FAAC allocations from fuel subsidy savings collected by the governors and Mr Wike would continue to have negative impacts on the fundamental interests of the citizens.

“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 suit 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 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.

“Directing and compelling states and FCT to disclose the details of the spending of the money collected as fuel subsidy savings would allow Nigerians to scrutinise them, and to public officials 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 fuel 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.

“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 per cent increase from the previous year.

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

“However, despite the increased allocations of public funds to states and 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 several states and the FCT continue to be denied access to basic public services."

Meanwhile, no date has been fixed for the hearing of the suit