The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, over their alleged failure to account for N14 trillion in fuel subsidy savings. The suit, filed at the Federal High Court, Lagos (Suit No. FHC/L/MSC/1424/2025), seeks detailed disclosures on the use of the funds, including project execution and completion reports.
SERAP’s legal action follows reports that governors and the FCT minister have collected significant funds from Federation Account Allocation Committee (FAAC) allocations since mid-2023 as savings from the removal of fuel subsidies. Despite these increased allocations, the group claims that millions of Nigerians continue to face poor access to essential services like healthcare and education.
The human rights organization argues that transparency in the spending of these funds is crucial for democracy, accountability, and citizens’ right to know. According to SERAP, “Opacity in the spending of the increased FAAC allocations from fuel subsidy savings collected by the governors and Mr Wike would continue to have negative impacts on the fundamental interests of the citizens.”
SERAP also warned that fuel subsidy savings should primarily benefit the poor and vulnerable, and alleged that some states may be misusing the funds to finance lavish lifestyles, unnecessary travel, and luxury purchases.
The suit references the 2024 FAAC distribution, noting that N28.78 trillion was shared across the three tiers of government, marking a 79% increase from the previous year. States reportedly received N5.22 trillion, with monthly distributions in 2025 exceeding N1.6 trillion. Despite this, civil servants’ salaries remain unpaid in some states, and access to basic public services continues to be limited.
SERAP’s lawyers, Oluwakemi Agunbiade and Valentina Adegoke, argue that the governors and FCT minister have a legal obligation under the Nigerian Constitution and international anti-corruption conventions to provide transparent records of the funds’ usage. They also cited a Supreme Court ruling affirming that the Freedom of Information Act applies to public records at the state level, including subsidy savings.
No date has been set yet for the hearing of the case. SERAP insists that the lawsuit is necessary to ensure public scrutiny, curb mismanagement, and protect the rights of millions of Nigerians affected by the fuel subsidy removal.
