Wike, 35 Others Sued Over ‘Missing’ N14trn Fuel Subsidy Savings

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against 35 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to account for about N14tr realised as fuel subsidy savings.

SERAP said the governors and the FCT minister have collected trillions of naira as increased allocations from the Federation Account Allocation Committee (FAAC) following the removal of fuel subsidy in May 2023, but noted that the funds have not translated into improved access to healthcare, education and other basic services for poor and vulnerable Nigerians.

The suit, marked FHC/L/MSC/1424/2025, was filed last Friday at the Federal High Court in Lagos, according to a statement signed on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare.

Also joined in the suit is the Office of the Accountant-General of the Federation.

In the action, SERAP is asking the court to direct and compel the respondents to make full disclosures on how the subsidy savings have been spent.

Specifically, the organisation is seeking an order to “direct and compel the governors and Mr Wike to disclose the details of the spending of the increased FAAC allocations being savings from the removal of fuel subsidy in May 2023.”

It is also asking the court to “compel the governors and Mr Wike to disclose details and the location of the projects executed, if any, with the increased FAAC allocations from the savings from the removal of fuel subsidy.”

In the suit filed by its lawyers, Oluwakemi Agunbiade and Valentina Adegoke, SERAP stated that, “The Federation Account Allocation Committee (FAAC) in 2024 distributed N28.78tr from the removal of subsidy on petrol to the three tiers of government, representing a 79 per cent increase from the previous year.”

The organisation added that, “State governments’ allocations increased by 45.5 per cent to N5.22tr. Monthly distributions in 2025 have reportedly exceeded N1.6tr.”

However, SERAP argued that the substantial increase in public funds accruing to states and the FCT has not benefited millions of Nigerians.

“Despite the increased allocations of public funds to states and FCT, millions of poor and socially and economically vulnerable Nigerians have not benefited from the savings,” the group said.

It further stated that, “Many states reportedly owe civil servants’ salaries and pensions. Several states continue to borrow to pay salaries. Millions of Nigerians resident in several states and the FCT continue to be denied access to basic public services.”

SERAP also pointed to governance concerns, saying, “Several years of allegations of corruption and mismanagement in the spending of public funds by several states and entrenched impunity of perpetrators have undermined public trust and confidence in governments at all levels.”

According to the group, Nigerians have a legal right to know how public funds are utilised.

“Nigerians have the right to know how public funds, including fuel subsidy savings, are spent by state governments and the FCT administration,” SERAP argued.

It added that, “The savings from the removal of fuel subsidy ought to be spent solely for the benefit of poor and vulnerable Nigerians who are bearing the brunt of the policy.”

SERAP said compelling disclosure would strengthen accountability, stressing that, “Directing and compelling states and FCT to disclose the details of the spending of the money collected as fuel subsidy savings would allow Nigerians to scrutinise them, and for public officials to account for the spending of public funds.”

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 which held that the Freedom of Information Act applies to public records across the federation, including records relating to the spending of subsidy savings by states and the FCT.

No date has been fixed for the hearing of the suit..