Governors Must Account for N14 Trillion Subsidy Savings or Face Lawsuit

Governors Must Account for N14 Trillion Subsidy Savings or Face Lawsuit. A prominent civil society group has issued a stern seven-day ultimatum to Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, demanding they publicly account for the estimated N14 trillion in fuel subsidy savings they have received.

The organisation, the Socio-Economic Rights and Accountability Project (SERAP), has threatened legal action if its demand for transparency is not met.

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Demand for Public Disclosure

SERAP’s demand, conveyed through a Freedom of Information (FoI) request, calls for the urgent disclosure of the spending details of the massive funds accrued from the removal of the petrol subsidy since mid-2023. Specifically, the group requires the following information:

• Detailed spending breakdown of the N14 trillion in fuel subsidy savings collected from Federation Account Allocation Committee (FAAC) allocations.
• Specific projects funded with the money, including their locations, implementation status, and any available completion reports.
• Plans for future subsidy savings, detailing earmarked projects and budgetary allocations.

The organisation stressed that the savings from the subsidy removal must be used solely for the benefit of poor and vulnerable Nigerians who are bearing the brunt of the policy change.

SERAP contends that despite the substantial increase in FAAC allocations—which saw N28.78 trillion distributed to the three tiers of government in 2024, a 79% increase from the previous year—the funds have largely been shrouded in secrecy. The increase has reportedly failed to translate into improved access to basic public services like healthcare and education for the masses.

The group noted a significant risk of mismanagement or diversion of funds, pointing to reports that some states are allegedly spending public money, which may include the subsidy savings, on:

• Unnecessary travels.
• The purchase of exotic and bulletproof cars.
• Funding the lavish lifestyles of politicians.

SERAP anchored its demands on the principles of constitutional and human rights obligations for transparency and accountability in managing public resources. It highlighted that citizens have a right to know how public funds are spent.

Crucially, the organisation referenced a recent Supreme Court judgment which affirmed that the Freedom of Information Act is applicable to all public records in the Federation, including those held by state governments.

SERAP warned that the governors’ failure to account for the savings would constitute a blatant disregard of this landmark court ruling, a judgment that effectively removes any legal shield for state governors seeking to escape accountability.

Expert Calls for Independent Oversight

Amid the calls for accountability, an expert has recommended establishing an independent oversight board to monitor the expenditure of the fuel subsidy savings.

The expert’s recommendation suggests that an external, non-partisan board is essential to ensure that the monumental funds are properly channelled towards tangible infrastructural development and poverty alleviation projects.

The measure is proposed as a structural solution to enhance fiscal responsibility and transparency at all levels of government and to prevent the funds from being diverted or used for political patronage, thereby ensuring the subsidy gains translate into real-world benefits for the Nigerian populace. FOR MORE INFORMATION, I RECOMMEND SONGBUX.