Fuel subsidy removal: Falana demands accountability over N15.8tr resources, warns against ‘scam’ era - Newstrends
Connect with us

Business

Fuel subsidy removal: Falana demands accountability over N15.8tr resources, warns against ‘scam’ era

Published

on

Fuel subsidy removal: Falana demands accountability over N15.8tr resources, warns against ‘scam’ era

Fuel subsidy removal: Falana demands accountability over N15.8tr resources, warns against ‘scam’ era

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has challenged the Federal Government, state governments and local authorities to account for the additional resources generated since the removal of petrol subsidy, warning that Nigerians must not be taken back to what he described as the era of the fuel subsidy scam.

Falana said Nigerians were entitled to know how the additional funds now available to the three tiers of government were being spent, particularly as households continue to face high food prices, transportation costs and other pressures associated with the cost-of-living crisis.

The senior lawyer made the remarks during an appearance on Channels Television’s Sunday Politics, where he questioned whether ordinary Nigerians were receiving adequate benefits from the increased revenue available to governments following the fuel subsidy removal.

According to Falana, it was no longer sufficient for governments to tell citizens to be patient while they wait for the benefits of economic reforms. He argued that the impact of increased government revenue should be visible in basic infrastructure and public services.

He cited the condition of a road in Ekiti State leading to Afe Babalola University as an example of what he described as a failure of public accountability.

Falana said the affected local government reportedly received about N5.4 billion between January and May 2026, yet a road reportedly requiring less than N500 million for rehabilitation remained in poor condition.

“So you can’t fix a road with less than 500 million naira? And in any case, state governments were fixing roads, and they would then go to Abuja to ask for a refund,” Falana said.

He argued that the situation raised broader questions about the management of public funds, particularly because states and local governments have received significantly higher allocations since the subsidy was removed.

READ ALSO:

Falana said accountability should not be limited to the Federal Government, stressing that citizens must also demand explanations from state and local government officials over the use of increased allocations.

“If you say we are making more money, we don’t want to go back to the era of the fuel subsidy scam. Where are the benefits?” he asked.

The lawyer also rejected repeated calls for Nigerians to simply wait for the benefits of the reforms, saying the economic hardship confronting citizens requires urgent action.

“It’s a fallacy being told to wait and wait and wait. People are dying,” he said.

Falana further argued that Nigeria should have gained significant fiscal space from ending government-funded petrol subsidies, particularly because the country was still generating revenue from crude oil.

He estimated that about $10 billion previously earmarked annually for fuel importation ought to have been saved following the end of the subsidy regime.

However, he said a substantial portion of government resources was being consumed by debt servicing, which he identified as one of the major challenges limiting the impact of increased revenues.

“Now, the money earmarked for fuel importation by the government—$10 billion per annum—ought to have been saved, but the bulk of this money goes for servicing of debt. That’s where the problem lies,” Falana said.

His comments come amid a renewed debate over what has happened to the resources freed by the petrol subsidy removal announced by President Bola Tinubu shortly after he assumed office in May 2023.

The Federal Government has disclosed that the removal of the subsidy helped mobilise about N15.8 trillion in resources for the Federation between June 2023 and December 2025.

The government has clarified that the N15.8 trillion should not be interpreted as cash sitting in a single Federal Government account. Rather, it represents resources mobilised across the Federation following the end of subsidy payments.

READ ALSO:

Of the amount, approximately N5.4 trillion accrued to the Federal Government, while about N10.4 trillion was shared among state and local governments through the Federation Account.

The breakdown released by the government put the Federal Government’s share at about N5.43 trillion, states at N6.52 trillion and local governments at N3.88 trillion.

The figures have fuelled calls for greater transparency, particularly over the use of the funds by state and local governments.

The Nigeria Employers’ Consultative Association (NECA) has also called on states and local governments to account for the estimated N10.4 trillion they received from resources linked to the subsidy reform.

The organisation said Nigerians should be able to identify the impact of increased allocations in infrastructure, public services and other areas that directly affect their quality of life.

The Federal Government, however, has maintained that the subsidy removal policy was necessary to reduce pressure on public finances and redirect resources towards infrastructure, social programmes and other development priorities.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has explained that the N15.8 trillion figure represents resources freed within the wider fiscal system rather than a single pool of money available for discretionary spending.

The Federal Government has also pointed to increased spending on infrastructure and social investment since the policy was introduced.

According to government figures, about N6.47 trillion in additional expenditure was committed to strategic infrastructure between June 2023 and December 2025, while more than N400 billion was committed to major social investment initiatives.

President Bola Tinubu has repeatedly defended the decision to remove the subsidy, arguing that the policy was financially unsustainable and that reversing it could undermine the country’s economic recovery.

The President has also criticised calls for a return to the previous subsidy system, arguing that such a move could recreate the fiscal problems associated with the old arrangement.

READ ALSO:

The debate has nevertheless remained politically sensitive, especially as Nigeria approaches the 2027 general elections.

Presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, has said he would restore the petrol subsidy if elected, arguing that Nigerians have not received sufficient benefits from its removal.

Atiku has maintained that his position is based on the need to reduce the burden of high fuel and living costs on Nigerians, while the Federal Government has warned that returning to the old subsidy model could reverse some of the economic gains recorded since 2023.

The subsidy debate is also likely to remain a major campaign issue as political parties present competing approaches to petrol pricing, inflation, public spending and economic reform.

For Falana, however, the central issue is not simply whether the fuel subsidy should be restored or permanently abolished but whether governments are properly accounting for the resources that became available after its removal.

He urged Nigerians to scrutinise government finances more closely and demand explanations from public officials at every level.

“Yes, state governments are getting more money. The Federal Government is getting more money. Local governments are getting more money on paper. It is the duty of the Nigerian people now to demand accountability,” Falana said.

The controversy therefore extends beyond the question of subsidy removal itself. It has increasingly become a debate over transparency, public spending and whether the financial resources freed by the policy are translating into better infrastructure, stronger public services and improved living conditions.

As the 2027 political season approaches, the question of how Nigeria’s governments have used the additional resources available since the end of the petrol subsidy is expected to remain at the centre of the country’s economic and political conversation.

Fuel subsidy removal: Falana demands accountability over N15.8tr resources, warns against ‘scam’ era

Loading

Aviation

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

Published

on

Fani-Kayode Condemns Fresh Killing of Two Nigerians in South Africa

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

 

Former Minister of Aviation, Femi Fani-Kayode, has challenged the criticism of former Vice-President Atiku Abubakar by the Minister of Aviation and Aerospace Development, Festus Keyamo, over the liquidation of Nigeria Airways and the non-payment of pension arrears owed to its former workers.

Fani-Kayode, who served as Minister of Aviation in 2006, argued that the defunct national carrier’s collapse resulted from years of mismanagement, corruption, mounting debts and operational failures that predated the return of former President Olusegun Obasanjo to democratic rule in 1999.

He made the remarks in a response to Keyamo’s statement on October 14, 2026, in which the aviation minister accused Atiku of hypocrisy over the airline’s liquidation in 2004 and the subsequent failure to pay its former employees their pensions and gratuities.

Keyamo had said President Bola Tinubu approved and released ₦36 billion to settle outstanding pension liabilities owed to former Nigeria Airways workers, adding that beneficiaries had begun receiving payment alerts.

In his response, Fani-Kayode acknowledged the Tinubu administration’s efforts to settle the outstanding liabilities but maintained that the history of the airline’s collapse required a broader examination of events preceding its liquidation.

According to him, Nigeria Airways was already in a critical state before Obasanjo returned to office in 1999.

Fani-Kayode recalled that when Obasanjo left office as military head of state in 1979, Nigeria Airways had 32 functional aircraft, experienced pilots and crew members, a competent management team and an accountable board of directors.

He said the airline was then regarded as a source of national pride but had deteriorated considerably over the following two decades.

By the time Obasanjo returned as elected president in 1999, Fani-Kayode claimed, only one aircraft remained, and it was not operational. He attributed the airline’s deterioration to years of alleged corruption, poor management and the disappearance of company assets.

He maintained that the liquidation process, which was completed in 2004, followed years of financial insolvency, operational collapse and unsuccessful attempts to rescue the airline.

Fani-Kayode also cited the withdrawal of the International Finance Corporation from privatisation-related efforts as part of the difficulties encountered in attempts to revive the company.

He said Obasanjo’s administration had little choice but to liquidate the airline rather than continue committing public funds to an organisation he described as having become practically irredeemable.

The former minister, however, acknowledged that the liquidation left thousands of former employees and their families facing prolonged financial hardship because their pension entitlements remained unpaid.

Recounting his own involvement in the matter, Fani-Kayode said a committee chaired by the then Head of the Civil Service of the Federation, Yayale Ahmed, recommended the release of funds to pay the pensioners.

He said that, as aviation minister in 2006, he presented a memorandum to the Federal Executive Council seeking approval for the payment of the outstanding entitlements and argued that settling the liabilities was the right thing to do.

However, according to him, the proposal was rejected after some members of the cabinet opposed it on the grounds that former management teams and boards of Nigeria Airways had contributed to the airline’s destruction.

Fani-Kayode said he disagreed with that position but acknowledged that those who supported payment were outnumbered during the deliberations.

He added that the issue was revisited under the late President Umaru Musa Yar’Adua, whose administration paid a substantial number of the pensioners. The administration of former President Muhammadu Buhari also made further payments, he said.

Commending Keyamo for the latest intervention, Fani-Kayode said he was pleased that the remaining pension liabilities had finally been addressed, while expressing regret that the payments had taken so many years.

He described the suffering endured by the former workers as immense and reiterated that paying their entitlements had always been the appropriate course of action.

On Atiku’s role in the Federal Executive Council deliberations, Fani-Kayode said he knew the position the former vice-president had taken during the debate but declined to disclose it publicly.

He argued that the eventual decision was a collective responsibility of the administration, adding that members of the government had to share the consequences of the outcome.

Fani-Kayode’s intervention has added another dimension to the political disagreement surrounding Nigeria Airways’ collapse, the handling of its former workers’ pension entitlements and the responsibilities of successive administrations.

While Keyamo credited the Tinubu administration with clearing the outstanding pension arrears, Fani-Kayode’s account focused on the airline’s long decline, the difficulties surrounding earlier efforts to pay its former employees and the involvement of successive governments in addressing the liabilities.

 

The dispute has also renewed attention on the fate of former Nigeria Airways workers, many of whom endured years of uncertainty while awaiting their retirement benefits.

 

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

Loading

Continue Reading

Auto

OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

Published

on

OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

 

…Introduces ₦890,000 monthly payment plan as Nigerian mobility firm marks sixth anniversary

Nigerian vehicle and energy company, OMAA, has unveiled three passenger vehicle models in compressed natural gas (CNG) and battery-electric variants, alongside a financing scheme offering repayment periods of up to 48 months to help transport operators and corporate organisations expand their fleets.

The new models — OMAA U3 minibus, K7 bus and V12 high-capacity city bus — are designed to serve different segments of the passenger transport market, from urban shuttles and institutional transport to large-scale mass transit operations.

The announcement, which coincides with the company’s sixth anniversary, also marks the introduction of OMAA Finance, a programme developed in partnership with Nigerian financial institutions to ease the burden of upfront vehicle acquisition costs.

Under the scheme, advertised monthly payments start from ₦890,000 for the OMAA U3 minibus, with an initial deposit of 10%. Financing terms, however, will depend on eligibility requirements, repayment tenure and the customer’s equity contribution.

The company has also opened pre-orders for the three models, giving prospective buyers the option of choosing between CNG and battery-electric powertrains according to their routes, operating costs and access to the necessary energy infrastructure.

Speaking on the development, OMAA’s Managing Director, Chinedu Oguegbu, said the launch reflected the company’s commitment to local automotive manufacturing and the expansion of cleaner, more affordable transport solutions.

“Six years ago, we set out to demonstrate that commercial vehicles could be assembled in Nigeria and powered by cleaner, more affordable energy. Today, the introduction of the OMAA U3, K7 and V12 in both CNG and electric variants, alongside our vehicle financing programme, represents another significant step towards that vision,” Oguegbu said.

He explained that the company’s objective extended beyond supplying vehicles to helping operators manage running costs, access after-sales support and build sustainable transport businesses.

“By combining locally supported servicing, parts availability and structured financing, we are creating opportunities for schools, hospitals, corporate organisations and mass transit operators to expand their fleets with greater confidence,” he added.

Three models target different market segments

The new lineup covers a broad range of passenger transportation needs.

The OMAA U3 is a 12-to-15-seater minibus designed for urban and intercity transport operators, institutional shuttle services and businesses requiring compact passenger vehicles.

The K7, with a capacity of 23 to 30 passengers, targets staff transportation, school bus services, corporate fleets and medium-capacity passenger routes.

The V12, the largest of the three models, is configured to accommodate between 43 and 70 passengers. It is designed for mass transit operators and businesses serving routes with high passenger demand.

All three models are offered in CNG and battery-electric configurations, allowing fleet owners to evaluate alternative powertrains based on fuel or electricity costs, vehicle utilisation, maintenance requirements and access to refuelling or charging facilities.

The dual-powertrain strategy comes as transport operators increasingly explore ways to manage energy expenses and improve the economics of commercial vehicle operations.

 

Special-purpose vehicles broaden applications

Beyond passenger buses, OMAA is offering special-purpose vehicle configurations based on the same platforms.

The options include cargo vans, ambulances, VIP transport vehicles and airport shuttles, extending the potential applications of the company’s vehicle range to logistics, healthcare, corporate mobility and airport transportation.

The use of common vehicle platforms could also help fleet owners streamline maintenance, spare-parts management and technical training, particularly where organisations operate different vehicle configurations.

 

Finance scheme targets high acquisition costs

OMAA Finance is a central component of the company’s strategy to lower the barriers to commercial vehicle ownership.

By spreading acquisition costs over repayment periods of up to four years, the programme is intended to help operators preserve working capital while expanding or renewing their fleets.

The advertised starting monthly payment of ₦890,000 for the U3, subject to a 10% initial deposit, provides an entry point for prospective buyers. The actual cost of financing will depend on the applicable terms, including the vehicle price, deposit, interest and other charges, where applicable.

The company is also promoting a total cost of ownership (TCO) approach, which considers not only the purchase price but also energy consumption, servicing, spare parts and other expenses incurred throughout a vehicle’s operating life.

According to OMAA, the combination of structured financing, local servicing support and spare-parts availability is intended to help customers plan operating expenses and make more informed fleet investment decisions.

However, the potential savings will vary according to the vehicle selected, financing conditions, energy prices, mileage, maintenance costs and the availability of suitable CNG refuelling or electric charging infrastructure.

 

Six years of operations

Headquartered in Umunya, Anambra State, with offices in Lagos, Abuja and Accra, OMAA operates in Nigeria and Ghana, serving fleet operators, institutions and businesses.

The latest launch builds on the company’s six-year operating history and its efforts to combine local vehicle assembly, alternative energy solutions and financing options in the commercial mobility market.

For transport operators contending with rising operating expenses and the high cost of fleet expansion, the new models and financing arrangements offer additional options for acquiring passenger vehicles.

The initiative’s long-term impact, however, will depend on the vehicles’ performance under local operating conditions, the accessibility and affordability of financing, reliable after-sales support and the availability of the infrastructure required to sustain CNG and electric mobility.

With the latest unveiling, OMAA is seeking to position itself beyond vehicle supply, offering an integrated commercial mobility proposition that combines vehicle acquisition, alternative energy choices, maintenance support and financing.

Loading

Continue Reading

Auto

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

Published

on

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.

Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.

The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.

The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.

Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.

Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.

READ ALSO:

He said wider adoption of CNG could help lower transportation and operating costs while supporting local industrial growth and creating employment opportunities.

The industrialist also called for stronger backward integration in the automotive sector, arguing that manufacturers should focus on producing components that Nigeria has the capacity to manufacture competitively.

At the Umunya facility, the executive director of Kojo Motors, Chinedu Oguegbo, said the company was concentrating on commercial vehicles designed for Nigeria’s transport needs.

He said the company had begun benefiting from the government’s local vehicle procurement policy but had faced challenges arising from the sharp depreciation of the naira and exchange-rate fluctuations.

Oguegbo added that the company was developing its natural gas facility, which he expected to become operational in the future. He also expressed optimism that the company’s Omma Bus brand could eventually be exported to international markets.

NADDC Director-General Oluwemimo Joseph said the inspection was intended to give the council first-hand knowledge of the challenges confronting local vehicle manufacturers.

He explained that the council was reviewing existing policies and working on proposed legislation to improve the operating environment for the industry.

According to him, information gathered during the visits would help the council develop measures to address manufacturers’ concerns and identify vehicle components that could be produced locally.

Joseph said Nigeria had numerous small and medium-sized enterprises capable of supplying components to the automotive industry, adding that stronger partnerships could create new business opportunities and reduce dependence on imported parts.

He also acknowledged concerns about the effect of imported used vehicles on local manufacturers, noting that the council was considering measures to address the competitive disadvantages faced by domestic producers.

NADDC Chairman, Chief Emma Eneukwu, said the council was advocating legislation to protect local vehicle manufacturers from the influx of imported used cars.

He argued that local producers needed a more supportive policy environment to compete effectively and expand production.

The Federal Government’s broader CNG and electric mobility programme is designed to reduce transport costs by encouraging the deployment of vehicles powered by alternative energy sources. However, the impact on passenger fares will depend on the availability of vehicles, refuelling infrastructure, operating costs and the extent to which transport operators pass savings on to commuters.

The Anambra visits form part of efforts to strengthen local manufacturing, encourage investment and improve the availability of vehicles for Nigeria’s public transportation system. While the collaboration could support cheaper transport over time, the visits did not announce a specific new fare reduction or implementation timetable.

 

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

Loading

Continue Reading

Trending