The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the 36 state governors and the Minister of the Federal Capital Territory (FCT), Mr Nyesom Wike, over their alleged failure to account for the expenditure of an estimated ₦14 trillion received as fuel subsidy savings.
The suit follows reports that the governors and the FCT minister have collectively received trillions of naira in increased allocations from the Federation Account Allocation Committee (FAAC) since the removal of fuel subsidy in May 2023, without corresponding improvements in access to quality healthcare, education, and other basic services for poor and vulnerable Nigerians.
In the suit, numbered FHC/L/MSC/1424/2025 and filed last Friday at the Federal High Court in Lagos, SERAP is asking the court to compel the governors and the FCT minister to disclose full details of how the increased FAAC allocations, derived from fuel subsidy savings, have been spent.
The organisation is also seeking an order directing the defendants to provide details of projects executed with the funds, including their locations and completion reports, if any.
SERAP argues that Nigerians have a constitutional and democratic right to know how public funds, including fuel subsidy savings, are utilised by public officials. According to the organisation, transparency and accountability in public spending are essential to democratic governance and the protection of citizens’ rights.
The group further contends that there is a compelling public interest for the governors and the FCT minister to urgently explain how the subsidy savings have been deployed, warning that opacity in the management of the funds continues to have adverse consequences for citizens.
SERAP maintains that the savings from fuel subsidy removal ought to be used solely for the benefit of poor and vulnerable Nigerians, who have been disproportionately affected by the policy. It argues that lack of transparency risks imposing a “double burden” on citizens already grappling with rising living costs.
The suit, filed on SERAP’s behalf by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, alleges a significant risk of mismanagement or diversion of the increased FAAC allocations, noting that spending details by several states and the FCT have largely remained undisclosed.
According to SERAP, millions of Nigerians have yet to benefit from the funds, amid reports that some states continue to owe salaries and pensions, borrow to meet recurrent obligations, and struggle to provide basic public services. The organisation also cited allegations that public funds may be used to finance luxury vehicles, extensive travels, and other non-essential expenditures by public officials.
SERAP further disclosed that FAAC distributed ₦28.78 trillion in 2024 from fuel subsidy savings to the three tiers of government, representing a 79 per cent increase from the previous year. State governments’ allocations reportedly rose by 45.5 per cent to ₦5.22 trillion, with monthly distributions in 2025 exceeding ₦1.6 trillion.
Despite the increased revenue, SERAP said widespread poverty, underdevelopment, and lack of access to essential services persist across several states and the FCT, undermining public trust in government.
The organisation cited provisions of the 1999 Constitution, the Freedom of Information Act, and Nigeria’s obligations under the United Nations Convention against Corruption, arguing that public officials are legally required to manage public resources transparently and in the public interest.
SERAP also referenced a Supreme Court judgment affirming that the Freedom of Information Act applies to public records at all levels of government, including state governments and the FCT.
No date has yet been fixed for the hearing of the suit.
