Human rights lawyer Femi Falana has questioned how governments are using the additional funds generated after the removal of Nigeria’s fuel subsidy.
Falana, a Senior Advocate of Nigeria, raised the issue during an appearance on Channels Television’s Sunday Politics.
The lawyer said Nigerians have yet to see enough benefits from the increased revenue available to the Federal, state and local governments since the subsidy removal.
Falana questions government spending
Falana referred to the condition of a road leading to Afe Babalola University in Ekiti State. He said residents had been asking the Federal Government to repair the road.
According to him, the local government received about N5.4bn between January and May this year. He questioned why the council could not use part of the allocation to fix the road.
“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 Nigerians should begin asking questions about how governments at all levels spend their increased allocations.
He argued that the removal of the subsidy should not simply result in higher government revenue without corresponding improvements in the lives of citizens.
“We must begin to ask questions of the local government, the state government, and the Federal Government. 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?”
‘People are dying’
Falana said Nigerians could not continue waiting for the benefits of the subsidy removal while facing economic hardship.
He argued that the government should explain how the additional funds are being used. According to him, Nigerians deserve clear evidence of the impact of increased government revenue.
“It’s a fallacy being told to wait and wait and wait. People are dying.”
The lawyer also said Nigeria is currently selling more crude oil while generating more revenue.
However, he questioned how much of the money previously allocated to fuel imports was actually saved after the subsidy ended.
Falana raises concern over debt servicing
According to Falana, the government previously earmarked about $10bn annually for fuel imports.
He argued that the funds should have created significant savings following the subsidy removal. Instead, he said a large portion of government revenue now goes towards servicing debt.
“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 the increased revenue available to governments should lead to greater accountability.
He noted that the Federal Government, state governments and local governments now have access to more funds on paper.
“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.”
Subsidy removal remains controversial
President Bola Tinubu announced the removal of the petrol subsidy shortly after assuming office in May 2023. The policy led to a sharp increase in the price of petrol and triggered widespread debate over its economic impact.
The Federal Government has defended the decision, arguing that subsidy payments were not provided for in the budget when Tinubu took office. The administration has also maintained that the policy has increased funds available to state governments.
Critics, however, continue to argue that many Nigerians have yet to feel the benefits of the additional revenue.
The issue is also becoming more prominent ahead of the 2027 presidential election. Former Vice President Atiku Abubakar has promised to restore the fuel subsidy if elected, while Peter Obi has supported its removal but said the resulting savings must be used properly.
