The Socio-Economic Rights and Accountability Project, has instituted a lawsuit against the 35 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to account for trillions of naira received as fuel subsidy savings.
Also joined in the suit is the Office of the Accountant-General of the Federation.
In a statement issued on Sunday and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the rights group said the action was filed last Friday at the Federal High Court in Lagos. The suit is marked FHC/L/MSC/1424/2025.
SERAP alleged that following the removal of fuel subsidy in May 2023, states and the FCT began receiving significantly increased allocations from the Federation Account Allocation Committee (FAAC), amounting to about N14 trillion, but without corresponding improvements in the welfare of Nigerians.
According to the organisation, “Despite the huge increase in FAAC allocations to states and the FCT as fuel subsidy savings, millions of poor and vulnerable Nigerians continue to be denied access to quality healthcare, education and other basic public services.”
The group is asking the court to compel the governors and the FCT minister to publicly disclose how the funds have been utilised since mid-2023.
Specifically, SERAP is seeking an order directing the respondents to “disclose the details of the spending of the increased FAAC allocations being savings from the removal of fuel subsidy in May 2023,” as well as “the details and locations of projects executed, if any, with the funds.”
In court documents filed by SERAP’s lawyers, Oluwakemi Agunbiade and Valentina Adegoke, the organisation noted that FAAC distributed N28.78 trillion in 2024 to the three tiers of government from subsidy removal proceeds, representing a 79 per cent increase from the previous year.
The suit stated that state governments’ allocations rose by 45.5 per cent to N5.22 trillion, while monthly FAAC disbursements in 2025 have reportedly exceeded N1.6 trillion.
However, SERAP argued that the increased inflow of funds has not translated into tangible benefits for citizens.
“Many states reportedly owe salaries and pensions, while others continue to borrow to meet recurrent expenses,” the organisation said.
It added that “years of allegations of corruption, mismanagement of public funds and entrenched impunity have eroded public trust and confidence in governments at all levels.”
SERAP maintained that Nigerians have a constitutional right to know how public funds, including fuel subsidy savings, are spent by state governments and the FCT administration.
“The savings from the removal of fuel subsidy ought to be used strictly for the benefit of poor and vulnerable Nigerians who are bearing the brunt of the policy,” the group said, adding that public disclosure would promote accountability and allow citizens to scrutinise government spending.
The organisation cited Sections 13, 15(5) and 16(2) of the 1999 Constitution (as amended), Nigeria’s obligations under the United Nations Convention against Corruption, and a Supreme Court judgment affirming that the Freedom of Information Act applies to public records across the federation.
No hearing date has been fixed for the suit.
