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SERAP Sues 35 State Governors Over N14trn Fuel‑Subsidy Saving
The Socio-Economic Rights and Accountability Project, SERAP, has sued the 35 state governors including the Minister of the Federal Capital Territory, Nyesom Wike, over their alleged failure to account for the spending of about N14 trillion realised as fuel subsidy savings.
The Deputy Director of SERAP, Kolawole Oluwadare, made this revelation in a statement on Sunday.
Oluwadare said other respondent includes the office of the Accountant-General of the Federation.
According to SERAP, the governors and the FCT minister have collected trillions of naira as increased allocations from the Federation Account Allocation Committee following the removal of fuel subsidy in May 2023, but that the funds have not translated into improved access to quality healthcare, education and other basic services for poor and vulnerable Nigerians.
It said that the suit, marked FHC/L/MSC/1424/2025, was filed last Friday at the Federal High Court in Lagos.
The rights group urged the court to order and compel the respondents to disclose details of how the increased FAAC allocations, described as fuel subsidy savings, have been spent since mid-2023.
It is also demanding for 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.
SERAP is seeking 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, the organisation argued that, “The Federation Account Allocation Committee (FAAC) in 2024 distributed N28.78 trillion from the removal of subsidy on petrol to the three tiers of government, representing a 79 per cent increase from the previous year.
“State governments’ allocations increased by 45.5 per cent to N5.22 trillion. Monthly distributions in 2025 have reportedly exceeded N1.6 trillion.
“However, 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.
“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.
“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 SERAP, Nigerians have a right to know how public funds, including fuel subsidy savings, are spent by state governments and the FCT administration.
It further argued 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.
At the time of filing this report no date has been fixed for the hearing of the suit.
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Aisha Yesufu Pushes For New Law Against Using Contractors As Bankers
Socio-political activist, Aisha Yesufu, has advocated for the enactment of a law that would compel all levels of government in Nigeria to settle contractors’ invoices within 30 days of project completion or service delivery.
The proposal was contained in a post shared on Yesufu’s official social media page, where she argued that delayed payments to contractors have continued to affect businesses, infrastructure development and job creation across the country.
Yesufu suggested that any outstanding payment beyond 30 days should attract mandatory interest calculated at the prevailing Central Bank of Nigeria Monetary Policy Rate plus an additional five per cent.
“There is a need for a strong, enforceable law to be enacted that compels every tier of government to pay contractors all due invoices within 30 days, with mandatory interest on any delayed payment,” she stated.
She argued that many contractors complete projects only to face prolonged delays in receiving payment, a situation she said has pushed several businesses into financial difficulties.
“Contractors will deliver on their work only for governments to delay payments for months or years, pushing many businesses into distress and liquidation,” Yesufu said.
According to her, the proposed law would discourage the practice of using contractors as a source of unofficial credit for government projects.
“No more using contractors as unwilling bankers,” she added.
The activist further maintained that delayed payments to contractors remain a major challenge to economic growth, infrastructure delivery and employment generation in Nigeria.
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Breaking News: Obasa Refutes Sponsoring APC Primaries Protests in Lagos
The Speaker of the Lagos State House of Assembly, Mudashiru Obasa, has distanced himself from the series of protests that followed the All Progressives Congress, APC, House of Assembly primaries in Lagos, warning individuals against using his name to promote demonstrations or political agitation.
Obasa also rejected attempts to associate him with the growing wave of protests that have trailed the release of candidates’ lists for the party’s legislative primaries, describing efforts to hold him responsible as unfair and misleading.
His reaction comes after APC members from several local government areas, including Badagry, Mushin, Amuwo-Odofin, Eti-Osa, Somolu, Ajeromi-Ifelodun and Oshodi-Isolo, staged a protest at the party’s secretariat on ACME Road in Ikeja on Tuesday, alleging irregularities in the conduct and outcome of the primaries.
The demonstration was the latest in a series of protests that have erupted across the state since the Lagos APC published the names of candidates said to have emerged from the primary elections.
Amid the controversy, messages circulated on WhatsApp alleging that Obasa had provided N2 billion to sponsor and coordinate the protests across different parts of the state.
Responding to the claims, the Speaker dismissed the allegations as false and unfounded, questioning the rationale behind linking him to the demonstrations.
“It is foolhardy, malicious, misleading and baseless for anybody to assume or imply that I will import or mobilise protesters from different local governments to the secretariat. To achieve what exactly?
“I am not a candidate in the disputed election, so why and how will I devote such an amount of money to organising protests?” he said.
Obasa further stressed that he remained committed to peace and unity within the APC, warning against attempts to drag his name into actions capable of creating division within the party.
“I am a peace-loving party man, and I abhor the use of my name and office for any form of illegality or to sow division within the party,” he added.
The Speaker reiterated his dedication to the stability and progress of the ruling party in Lagos, stating that his focus remains on promoting harmony and supporting the continued development of the state.
“My steadfast commitment remains the unity, peace, and progress of our great party and the people of Lagos State,” Obasa said.
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