The Socio-Economic Rights and Accountability Project (SERAP) has called on Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, to immediately disclose how they have spent the estimated N14 trillion in fuel subsidy savings received through Federation Account Allocation Committee (FAAC) disbursements.
In a Freedom of Information (FoI) request dated 4 October 2025 and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation demanded transparency regarding the locations, status, and completion of projects allegedly funded with the subsidy savings.
“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,” Oluwadare stated.
SERAP also urged the governors and Mr Wike to disclose future plans for the utilisation of upcoming fuel subsidy savings, including details of proposed projects and targeted beneficiaries.
The organisation stressed that while trillions have been received by the states and the FCT since the removal of the subsidy in mid-2023, there is little to show in terms of improved access to public services such as healthcare, education, and social welfare.
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“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,” SERAP said.
“Transparency in the spending of the money would help avoid a morally repugnant result of double jeopardy on these Nigerians,” it added.
SERAP noted that many states have received significantly increased FAAC allocations since subsidy removal, yet widespread poverty, unemployment, and inadequate public infrastructure persist.
“There is a significant risk of mismanagement or diversion of funds linked to the increased FAAC allocations collected by the states and FCT,” the statement warned.
“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.”
To ensure accountability, the organisation urged anti-graft agencies—the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC)—to monitor and investigate the use of the funds.
The federal government had removed fuel subsidies in May 2023, with the promise that savings would be redirected to developmental projects and social investment. However, over a year later, citizens and watchdog groups continue to question the lack of visible impact.
If the governors and the FCT Minister fail to respond within the stipulated time under the FoI Act, SERAP has indicated it will pursue legal action to compel disclosure.
