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.

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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.

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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.

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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

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

The presidential candidate of the Peoples Redemption Party (PRP), Donald Duke, has described Nigeria’s fuel subsidy policy as a “scam”, arguing that petrol could sell for about N200 per litre if the country properly harnesses its crude oil, natural gas and other energy resources.

Duke made the statement amid renewed political debate over the future of petrol subsidy in Nigeria, following comments by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, who said he would introduce targeted subsidies to cushion Nigerians from the impact of high fuel and transportation costs if elected president in 2027.

Atiku’s position has reignited arguments over the decision by President Bola Tinubu to remove petrol subsidy shortly after assuming office in May 2023. The Tinubu administration has consistently defended the policy, arguing that the former subsidy regime was financially unsustainable and consumed resources that could be channelled into infrastructure, social programmes and other development priorities.

The Federal Government has also rejected calls for a return to the old subsidy arrangement, maintaining that subsidy removal has strengthened public finances and increased the resources available to the three tiers of government.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, recently said the removal of petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025. He said the amount included N5.4 trillion received by the Federal Government and N10.4 trillion shared among state and local governments through the Federation Account.

The government has presented the figures as evidence that subsidy removal has created fiscal space, although critics argue that the policy has also contributed to higher transportation, food and household costs.

Duke, however, questioned the basis of the subsidy argument, saying Nigeria’s natural resource wealth should make it possible to provide affordable petroleum products without relying on an expensive government subsidy system.

“Look, I don’t believe there’s any subsidy in fuel,” Duke said.

“For a barrel of crude oil, there are about seven by-products. The two consequential ones are diesel and petrol – PMS and AGO – and kerosene, aviation fuel and all those things.

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“You sell them at commercial rates, okay? Work it out. You can almost sell petrol today at N200 a litre, not the N1,000-plus.

“So that thing about subsidy, I think, is the biggest scam that has been perpetrated, maybe globally.”

Duke’s N200 per litre petrol projection is his own assessment of what he believes could be achieved through better management of Nigeria’s energy resources. It does not represent the current pump price or an official pricing projection by the Federal Government or the Nigerian National Petroleum Company Limited (NNPCL).

Petrol prices remain substantially above that level in most parts of the country, although prices vary between locations and marketers.

The former Cross River State governor argued that Nigeria’s problem was not a lack of natural resources but the failure to convert those resources into affordable and reliable energy for citizens and businesses.

“You’re an energy-blessed country,” Duke said. “You have all known forms of energy existing in Nigeria – from the crudest, which is human labour, to hydrocarbons, solar, hydro, uranium and now lithium.

“You have all those things. Why are we still energy-poor? Because the political will is not there. But even beyond the political will, we’re not thinking through this.”

Duke also criticised the continued flaring of natural gas in Nigeria, arguing that a country struggling with electricity shortages should not be wasting a valuable energy resource.

“We easily flare two billion cubic feet of gas a day,” he said. “That is equivalent to 20 million litres of diesel.

“If you had a turbine to power all of Africa, it would not consume 20 million litres of diesel daily.

“So, it’s akin to the abundance of water while the fish is thirsty.”

The argument comes at a time when Nigeria is attempting to increase domestic oil refining and reduce its dependence on imported petroleum products.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that domestic refineries supplied billions of litres of petrol during the first seven months of 2026, with the Dangote Petroleum Refinery accounting for a significant share of domestic production.

The increased refining capacity has altered Nigeria’s downstream petroleum market, but domestic production has not completely eliminated the need for imports. Supply levels and petrol prices continue to fluctuate depending on refinery output, crude availability, logistics, international oil prices and other market conditions.

Duke maintained that Nigeria should focus on using its natural endowments to lower production costs rather than relying primarily on international price comparisons.

“When I hear excuses like, ‘Oh, it’s cheaper in America,’ or, ‘We’re cheaper than it is in America,’ every country has its own endowments,” he said.

“You’ve got to use what you’ve got to get what you want. We are an energy-blessed country. The people should feel their blessings.”

He further questioned Nigeria’s energy strategy, pointing to the country’s participation in the West African Gas Pipeline while domestic industries and households continue to experience inadequate gas and electricity supplies.

“You have a West African Gas Pipeline, but you don’t have any self-sufficiency in gas in your country,” Duke said. “There’s something wrong somewhere. We’re not thinking.”

The PRP candidate argued that Nigeria’s energy crisis could be addressed through stronger political commitment, better infrastructure, increased domestic refining and more effective utilisation of the country’s oil and gas resources.

His position differs from both the Tinubu administration and Atiku’s proposed approach. While the Federal Government maintains that subsidy removal was necessary to protect public finances, Atiku is advocating targeted government intervention to reduce the burden of high energy costs, while Duke argues that Nigeria should use its resource advantage to make energy cheaper without depending on a conventional subsidy regime.

The renewed fuel subsidy debate is expected to remain a major issue ahead of the 2027 presidential election, particularly as political parties and candidates seek to address the effects of high petrol prices on transportation, food prices, businesses and household incomes.

For Duke, the central question is not simply whether Nigeria should restore or retain petrol subsidy, but why a country with vast oil, gas and other energy resources continues to struggle with high energy costs.

“Why are we still energy-poor?” Duke asked. “The political will is not there. We’re not thinking through our problems.”

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo

Suspected railway vandals fled for their lives after security operatives swooped on a railway siding serving the Dangote Steel Rolling Mills in Osogbo, Osun State, recovering nine oxygen gas cylinders allegedly deployed for the illegal operation.

The recovery operation, carried out by the Nigerian Railway Corporation (NRC) in collaboration with the Nigeria Security and Civil Defence Corps (NSCDC), followed a report of vandalisation of railway track materials at the siding, currently not in operation.

According to a statement issued by the NRC Chief Public Relations Officer, Callistus Unyimadu, and signed for the management, the Principal Track Officer (PTO), Osogbo, received a report on Friday, August 28, 2026, concerning the ongoing vandalisation of railway track materials at the location.

Following the report, the PTO proceeded to the site with security personnel, including officers of the NSCDC Railway Command. On sighting the operatives, the suspected vandals reportedly fled the scene.

A subsequent search of the area led to the recovery of nine oxygen gas cylinders, which were allegedly being used in the illegal operation.

The recovered railway materials and the surrounding area have since been secured by security personnel, the NRC said.

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Reacting to the development, NRC Managing Director and Chief Executive Officer, Dr Kayode Opeifa, commended the security personnel for their vigilance and timely intervention, describing the operation as another significant success in the sustained efforts to protect railway infrastructure from vandals and economic saboteurs.

Opeifa directed security operatives to intensify surveillance and enforcement at the Dangote Steel Rolling Mills siding and other railway corridors nationwide.

He also urged security formations across the railway network to strengthen collaboration with relevant agencies to prevent the vandalisation and theft of railway assets.

The NRC boss appealed to members of the public, particularly communities located along railway corridors, to promptly report suspicious activities around railway tracks, stations and other railway facilities.

He stressed that railway infrastructure constitutes critical national assets whose protection is essential to the safety of rail operations, sustainability of services and the economic development of the country.

Opeifa further assured that the NRC would continue to provide necessary support to security agencies in the collective effort to stamp out vandalism and other acts capable of undermining railway operations across the country.

The statement said the NRC remains committed to strengthening collaboration with security agencies to safeguard railway infrastructure nationwide.

Nine Oxygen Cylinders Recovered as NRC, NSCDC Thwart Rail Vandalism in Osogbo