The Socio-Economic Rights and Accountability Project (SERAP) has called on Nigeria‘s 36 state governors and the Minister of the Federal Capital Territory, Mr. Nyesom Wike, to transparently disclose how they have utilized the estimated N14 trillion fuel subsidy savings received through FAAC allocations. This includes providing comprehensive information on the projects funded, their locations, current progress, and completion status.
SERAP further insists that these officials outline their strategies for managing future fuel subsidy savings expected from FAAC disbursements, detailing any planned initiatives earmarked for these funds.
In addition, the organization has urged the governors and the FCT minister to formally invite the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to oversee and audit the expenditure of these subsidy savings, ensuring the funds are not misappropriated for personal gain.
Since mid-2023, the 36 governors and the FCT minister have reportedly received trillions of naira from FAAC allocations as fuel subsidy savings. However, this influx of funds has yet to result in tangible improvements in essential public services such as healthcare and education, particularly for Nigeria’s impoverished and vulnerable populations.
In Freedom of Information requests dated 4 October 2025 and signed by SERAP’s deputy director, Kolawole Oluwadare, the organization emphasized the urgent public interest in having these officials clarify how the subsidy savings have been spent to date.
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SERAP highlighted that the proceeds from the fuel subsidy removal should be exclusively allocated to support the poor and marginalized Nigerians who are most affected by the subsidy’s elimination. Transparency in the management of these funds is crucial to prevent the unfair burden of double hardship on these communities.
The Freedom of Information requests state: “There is a considerable risk that the increased FAAC allocations received by the states and the FCT could be mismanaged or diverted.”
“Details regarding how the funds collected from fuel subsidy savings have been spent remain largely undisclosed,” the requests add.
“Despite the vast sums collected, millions of disadvantaged Nigerians have yet to see any benefits, as poverty continues to deepen across the country.”
“Reports indicate that some states, including yours, may be using public funds-potentially including fuel subsidy savings-to finance extravagant travel, purchase luxury and bulletproof vehicles, and sustain opulent lifestyles for politicians.”
SERAP has requested that these transparency measures be implemented within seven days of receiving or publishing the letter. Failure to comply will prompt the organization to pursue legal action to compel disclosure in the public interest.
“Nigerians are entitled to know how their states and the FCT are allocating the savings from the fuel subsidy removal, as part of their fundamental right to information,” SERAP stated.
“Addressing corruption in the management of these funds is essential to reducing poverty, enhancing access to vital public services, and strengthening the capacity of states to fulfill their duties effectively and efficiently.”