An advocacy group, Socio-Economic Rights and Accountability Project (SERAP), has given President Bola Tinubu a seven-day ultimatum to “publish details of spending amounting to about N400 billion” from the fuel subsidy removal. 

In a letter to the president on Sunday, SERAP expressed concerns that the savings from the subsidy removal might be embezzled, misappropriated or diverted into private pockets.

“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. the group said in the letter signed by its deputy director, Kolawole Oluwadare. “If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.”

SERAP said unless the government was transparent and accountable to Nigerians on how it spends the savings from the subsidy, the removal would continue to undermine Nigeria’s’ rights and increase their vulnerability to poverty and social deprivation. 

“Transparency and accountability in the spending details of the N400 billion saved as a result of the removal of subsidy on petrol, and on the spending of subsequent savings from the removal would mean that the savings can help poor Nigerians to overcome the effects of such removal.”

SERAP added that Mr Tinubu’s government had a legal responsibility to ensure that the savings from the subsidy are spent solely to benefit the 137 million poor Nigerians bearing the brunt of the removal.

It urged the president to promptly instruct the anti-graft agencies; Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to monitor the spending.

Shortly after taking the oath of office on May 29, Mr Tinubu announced that there would no longer be a petroleum subsidy regime.

Revealing that the 2023 budget he saw has no provision for subsidy, the president stated that funds meant for the subsidies would now be diverted to public infrastructure, education, health care and job opportunities. 

In February 2023, the Nigerian National Petroleum Company Ltd. (NNPCL) disclosed that the amount spent as fuel subsidy had crossed N400 billion monthly.

Mele Kyari, the NNPCL’s Group Chief Executive Officer, disclosed this at an event where the company was changed from a corporation.

“Our customers are here; we are transferring to each of them at N113 per litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30, will give you over N400 billion of subsidy every month,” he stated.