Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana
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.
Bruno Fernandes hat-trick inspires Man United to thrash Ipswich 5-2 Bruno Fernandes scored a stunning…
Tinubu takes South Africa xenophobic attacks against Nigerians to AU President Bola Ahmed Tinubu has…
Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke The presidential…
Why Students Need More Than Exam Success to Thrive in University, Workplace — Cambridge By…
Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo Suspected railway vandals…
Igboho, Iru Èkùn: Act Now Before Parallel Authority Emerges — Agunbiade ‘No individual, group should…