The Socio-Economic Rights and Accountability Project (SERAP) has instituted legal action against the 35 state governors, including the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to provide accountability for the spending of about N14 trillion generated as fuel subsidy savings.
The Deputy Director of SERAP, Kolawole Oluwadare, revealed this in a statement issued on Sunday.
Oluwadare stated that other respondents include the office of the Accountant-General of the Federation.
According to SERAP, the governors and the FCT minister have received trillions of naira as increased allocations from the Federation Account Allocation Committee following the removal of fuel subsidy in May 2023, but the funds have not resulted in improved access to quality healthcare, education, and other essential services for poor and vulnerable Nigerians.
It stated that the suit, marked FHC/L/MSC/1424/2025, was filed last Friday at the Federal High Court in Lagos.
The rights organisation urged the court to order and compel the respondents to disclose details of how the increased FAAC allocations, referred to as fuel subsidy savings, have been utilised since mid-2023.
It is also seeking an order 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 asking the court to compel the governors and Mr Wike to disclose details and the locations of the projects executed, if any, with the increased FAAC allocations from the savings arising from the removal of fuel subsidy.
In the suit filed by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, the organisation argued that, “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.
“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.”
According to SERAP, Nigerians have a right to know how public funds, including fuel subsidy savings, are spent by state governments and the FCT administration.
It further argued that the savings from the removal of fuel subsidy ought to be spent solely for the benefit of poor and vulnerable Nigerians who are bearing the burden of the policy.
At the time of filing this report, no date has yet been fixed for the hearing of the suit.
