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‘Where Are the Benefits?’ Falana Questions Use of Fuel Subsidy Savings

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has renewed his criticism of the fuel subsidy removal, questioning how the additional revenue generated from the policy is being spent. Falana raised the issue during an appearance on Channels Television’s Sunday Politics, where he challenged the Federal, state and local governments to account […]

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has renewed his criticism of the fuel subsidy removal, questioning how the additional revenue generated from the policy is being spent.

Falana raised the issue during an appearance on Channels Television’s Sunday Politics, where he challenged the Federal, state and local governments to account for the funds they have received since the subsidy was removed.

“I was just reading some news about a particular road in Ekiti State, the road that leads to Afe Babalola University. And everybody there is asking the Abuja people to come and fix the road, whereas between January and May this year, that local government has taken about N5.4 billion,” he said.

He questioned why such a road could not be repaired with the funds available to the local government.

“So you can’t fix a road with less than N500 million? And in any case, state governments were fixing roads, and they would then go to Abuja to ask for a refund,” Falana said.

The lawyer urged Nigerians to demand greater accountability from all three tiers of government, warning against a repeat of the controversies that surrounded fuel subsidy spending.

“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?” he asked.

Falana argued that Nigerians should not be continually asked to wait for the benefits of subsidy removal, stressing that the economic hardship facing citizens requires urgent action.

“It’s a fallacy being told to wait and wait and wait. People are dying,” he said.

According to the activist, Nigeria is currently producing more crude oil and generating higher revenues, but the expected savings from the removal of fuel subsidies have largely been 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.

Falana maintained that increased revenue accruing to the Federal, state and local governments should translate into better infrastructure and improved living conditions for Nigerians.

“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,” the 68-year-old lawyer said.

President Bola Tinubu announced the removal of the fuel subsidy shortly after assuming office in May 2023, triggering a sharp increase in petrol prices and raising the cost of living across the country.

The Federal Government has defended the policy, arguing that subsidy payments were not adequately provided for when Tinubu assumed office and that the resulting increase in allocations has given states and local governments more resources to fund development projects.

However, critics continue to argue that the benefits of the policy have yet to translate into meaningful improvements in the lives of ordinary Nigerians.

The subsidy removal remains one of the most contentious economic policies of the Tinubu administration, with its impact and implementation likely to remain a major issue ahead of the 2027 general elections.

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