SERAP Challenges Governors to Reveal Fuel Subsidy Savings Expenditure

Onyekachi Eke
4 Min Read

The Socio-Economic Rights and Accountability Project (SERAP) has demanded that Nigeria’s 36 state governors and the Federal Capital Territory minister provide comprehensive details of how they have spent an estimated N14 trillion in fuel subsidy savings.

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The organisation has issued formal Freedom of Information (FoI) requests, calling on state leaders to disclose precise spending details, including project locations, implementation status, and completion reports. SERAP’s ultimatum gives governors seven days to respond or face potential legal action.

According to SERAP’s deputy director, Kolawole Oluwadare, the core issue is the lack of transparency surrounding the substantial funds collected through FAAC allocations since mid-2023. Despite receiving trillions of naira from fuel subsidy removals, state governments have allegedly failed to improve basic public services for vulnerable populations.

The Federation Account Allocation Committee (FAAC) distributed N28.78 trillion in 2024 following petrol subsidy removal, representing a staggering 79% increase from the previous year. State governments’ allocations specifically increased by 45.5% to N5.22 trillion, with monthly distributions in 2025 reportedly exceeding N1.6 trillion.

However, SERAP argues that these increased allocations have not translated into meaningful improvements for citizens. The organisation highlights persistent challenges, including unpaid civil servant salaries, ongoing pension arrears, and continued borrowing to meet basic governmental obligations.

The anti-corruption group has urged governors to invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to track and monitor subsidy savings expenditure, preventing potential misappropriation.

SERAP’s allegations extend beyond mere financial mismanagement. The organisation claims that some states are reportedly using public funds, potentially including subsidy savings, for unnecessary expenses such as exotic vehicle purchases and funding lavish political lifestyles.

The request is grounded in multiple legal frameworks, including the Nigerian Constitution, Freedom of Information Act, and international anti-corruption conventions. SERAP emphasises citizens’ fundamental right to understand how public funds are being utilised.

Citing a recent Supreme Court judgment, the organisation argues that governors can no longer claim exemption from transparency requirements. The court’s ruling effectively mandates comprehensive disclosure of public fund expenditures.

“Transparency would ensure that public funds are not diverted into private pockets,” the FoI request stated. “Millions of poor and vulnerable Nigerians have not benefited from the trillions of naira collected by the governors.”

The organisation’s broader argument centres on democratic accountability. By demanding detailed spending reports, SERAP aims to enable citizens to scrutinise governmental financial decisions and participate more effectively in public resource management.

Legal experts supporting SERAP’s position argue that the constitutional principles of democratic governance require open access to information about governmental spending. The organisation contends that such transparency is crucial for maintaining public trust and preventing systemic corruption.

SERAP’s intervention comes at a critical time when Nigeria continues to grapple with widespread poverty and limited public service delivery. The fuel subsidy removal was initially presented as a mechanism to redirect funds toward critical infrastructure and social development.

The organisation’s demands reflect growing public frustration with governmental opacity and the perceived disconnect between increased financial allocations and tangible societal improvements.

If governors fail to provide comprehensive spending details within the seven-day window, SERAP has indicated it will pursue legal mechanisms to compel compliance, potentially setting a significant precedent for governmental accountability in Nigeria.

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