Serap calls for fuel subsidy savings, Wike urges governments

The Call for Transparency in Fuel Subsidy Savings

The Socio-Economic Rights and Accountability Project (SERAP) has raised a critical issue regarding the use of funds generated from the removal of fuel subsidies in Nigeria. The organization has called on all 36 state governors and the Minister of the Federal Capital Territory, Nyesom Wike, to publicly disclose how they have spent the trillions of naira received since the policy’s removal in 2023.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the group is urging the governors and FCT minister to provide detailed plans on how they intend to use future fuel subsidy savings from Federation Account Allocation Committee (FAAC) allocations. This includes information on any planned projects that the money would be spent on.

Concerns Over Secrecy and Mismanagement

In a series of Freedom of Information (FoI) requests sent to the governors and the FCT minister, SERAP expressed concern over the lack of transparency in the spending of increased FAAC allocations. The organization warned that there is a significant risk of mismanagement, diversion of public funds, and reckless spending on nonessential luxuries while millions of Nigerians continue to face worsening poverty, unpaid salaries, and lack of access to basic social services.

SERAP emphasized that the increased FAAC allocations following the end of fuel subsidies should have translated into measurable social and economic relief for citizens. However, instead of addressing these issues, the situation has raised more questions than answers.

Legal Action and Public Accountability

The organization cautioned that if the state governments and the FCT administration fail to respond to the FoI requests within seven days, it will take appropriate legal action to compel transparency and accountability. This follows recent Supreme Court judgments that reinforce the importance of transparency in the management of public funds.

The FoI requests highlighted several concerns, including the risk of mismanagement or diversion of funds linked to the increased FAAC allocations collected by the states and FCT. It also pointed out that the spending details of the money collected by several states and the FCT from fuel subsidy savings have been mostly shrouched in secrecy.

Impact on Citizens and Public Trust

Millions of poor and vulnerable Nigerians have not benefited from the trillions of naira collected by governors and the FCT minister as a result of the subsidy savings. Nigerians continue to face a worsening poverty crisis, with many states reportedly spending public funds on unnecessary travels, exotic and bulletproof cars, and the lavish lifestyles of politicians.

There are continuing reports of widespread poverty, underdevelopment, and lack of access to public goods and services in several states. Opacity in the spending of fuel subsidy savings collected by the states would continue to have negative impacts on the fundamental interests of the citizens and the public interest.

Constitutional and International Obligations

SERAP emphasized that the Nigerian Constitution, specifically Sections 15(5), 16(2), and 13, imposes clear responsibilities on public institutions, including state governments, to conform to, observe, and apply the provisions of Chapter 2 of the Constitution. These sections require public institutions to abolish corrupt practices and ensure that the material resources of the nation are harnessed and distributed for the common good.

Under the UN Convention against Corruption, Nigeria has made legally binding commitments to ensure accountability in the management of public resources. Articles 5 and 9 of the Convention impose legal obligations on state governments and the FCT to ensure proper management of public affairs and public funds.

The Role of the Freedom of Information Act

The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their government’s activities. The constitutional principle of democracy also provides a foundation for Nigerians’ right to know the spending details of the money collected from the savings from the removal of fuel subsidy.

Citizens’ right to know promotes openness, transparency, and accountability, which are crucial for the country’s democratic order. The effective operation of representative democracy depends on the people being able to scrutinise, discuss, and contribute to government decision-making, including on the spending of money collected by the states and FCT from the subsidy savings.

Supreme Court Judgment and Legal Precedent

The Supreme Court has declared that the Freedom of Information Act “is applicable and applies to the public records in the Federation,” including those relating to the spending of the subsidy savings kept by the states. With this landmark judgment, the Supreme Court has made clear that state governors can no longer hide under their unfounded claim that the Freedom of Information Act does not apply to them.

As the Supreme Court has eloquently stated, any freedom of information laws by states are subject to the Freedom of Information Act. Any failure to account for the spending of money collected by the states from the subsidy savings will amount to a blatant disregard of the Supreme Court judgment, which has effectively ended the claims by governors that the Freedom of Information Act does not apply to how they spend public funds.

Conclusion

SERAP urges state governors to promptly uphold the Supreme Court judgment by urgently accounting for how their states are spending the money they collected from the subsidy savings. The Supreme Court has pointed the way for state governors to show accountability and commitment to transparency in the spending of public funds.

Similarly, the states have clear legal obligations to provide the information sought as prescribed by provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights (Ratification and Enforcement) Act.