Subsidy Removal Must Not Become Another Scam — Falana Tackles FG Over N5.4bn LG Allocation, Unfixed N500m Road
Human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has warned the Federal Government against allowing the petrol subsidy removal to become another avenue for financial mismanagement.
Falana said Nigerians deserve to know how the additional revenue generated from subsidy removal is being spent, especially as citizens continue to grapple with rising cost of living.
He spoke on Channels Television’s Sunday Politics on Sunday, where he questioned why Nigerians are being asked to endure hardship without corresponding improvements in public services and infrastructure.
Citing a road in Ekiti State leading to Afe Babalola University, Falana said the affected local government received about N5.4 billion between January and May 2026, yet a road requiring less than N500 million to fix remained in deplorable 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.
Falana insisted that accountability must cut across all tiers of government, noting that the Federal Government, states and local governments now earn 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?” he queried.
“It’s a fallacy being told to wait and wait and wait. People are dying,” he added.
According to him, about $10 billion previously spent annually on fuel importation ought to have been saved, but a large chunk of the additional revenue is being used to service 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.
He urged Nigerians to scrutinize government finances and demand accountability on how increased allocations are utilized.
“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.
President Bola Tinubu announced the removal of petrol subsidy in May 2023 shortly after assuming office, a decision that led to a sharp hike in petrol price and remains one of the most controversial economic policies of his administration.
While the Federal Government maintains that the policy was necessary to free up resources for development, critics argue that the benefits have not reached ordinary Nigerians amid inflation and high living costs.
The subsidy debate is expected to be a major issue ahead of the 2027 presidential election, with Atiku Abubakar pledging to restore it if elected, while Peter Obi supports its removal but demands transparent investment of the savings.
