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Human rights lawyer Femi Falana has warned the Federal Government against allowing the removal of petrol subsidy to become another avenue for financial mismanagement, demanding accountability over the increased revenue now available to governments.
The Senior Advocate of Nigeria said Nigerians were entitled to know how the additional funds generated following the subsidy removal were being spent, especially as many citizens continue to struggle with rising living costs.
Falana spoke on Channels Television’s Sunday Politics, where he questioned the justification for asking Nigerians to endure economic hardship without seeing corresponding improvements in public services and infrastructure.
He pointed to the poor condition of a road in Ekiti State leading to Afe Babalola University as an example of what he described as a failure to translate increased government revenue into development.
Falana said the affected local government reportedly received about N5.4 billion between January and May and questioned why a road requiring less than N500 million to repair 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,” he said.
The lawyer said accountability should extend across all three tiers of government, particularly because the Federal Government, states and local governments now receive more revenue following the policy change.
“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?” Falana asked.
He added: “It’s a fallacy being told to wait and wait and wait. People are dying.”
Falana said Nigeria was generating more revenue from crude oil and that the funds previously earmarked for petrol imports should have provided significant fiscal space.
He estimated that about $10 billion previously allocated annually for fuel importation could have been saved, but said much of the government’s additional revenue was instead being absorbed by debt servicing.
“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,” he said.
He urged Nigerians to scrutinise government finances and demand explanations for how increased allocations are being used.
“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,” he said.
Tinubu announced the removal of petrol subsidy in May 2023, shortly after taking office. The decision resulted in a significant increase in the price of petrol and has remained one of the most controversial economic policies of his administration.
The Federal Government has maintained that subsidy removal was necessary to redirect resources towards development and reduce pressure on public finances.
However, opponents of the policy have argued that the benefits have not sufficiently reached ordinary Nigerians, particularly amid persistent inflation and high living costs.
The subsidy question is also expected to feature prominently ahead of the 2027 presidential election.
Atiku Abubakar has pledged to restore the subsidy if elected, while Peter Obi has backed its removal but called for the savings to be transparently and efficiently invested.
