The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against 35 state governors in Nigeria, including the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to account for the spending of approximately N14 trillion in fuel subsidy savings. According to SERAP’s Deputy Director, Kolawole Oluwadare, the suit also includes the office of the Accountant-General of the Federation as a respondent.
The lawsuit, filed at the Federal High Court in Lagos, seeks to compel the governors and the FCT minister to disclose details of how the increased allocations from the Federation Account Allocation Committee (FAAC) have been spent since the removal of fuel subsidy in May 2023. SERAP argues that despite the significant increase in allocations, the funds have not translated into improved access to quality healthcare, education, and other basic services for poor and vulnerable Nigerians.
The rights group is demanding that the court orders the respondents to disclose details of the spending of the increased FAAC allocations, including the location of projects executed, if any. The suit argues that the increased allocations, resulting from the removal of fuel subsidy, ought to be spent solely for the benefit of poor and vulnerable Nigerians who are bearing the brunt of the policy.
According to SERAP, the FAAC distributed N28.78 trillion to the three tiers of government in 2024, representing a 79% increase from the previous year. State governments’ allocations increased by 45.5% to N5.22 trillion, with monthly distributions in 2025 exceeding N1.6 trillion. However, despite this significant increase in public funds, many states reportedly owe civil servants’ salaries and pensions, and millions of Nigerians continue to be denied access to basic public services.
The lawsuit highlights the need for transparency and accountability in the spending of public funds, particularly in the context of the fuel subsidy savings. SERAP argues that Nigerians have a right to know how public funds are being spent, and that the savings from the removal of fuel subsidy should be used to benefit poor and vulnerable Nigerians. The case is currently pending, with no date fixed for the hearing.