SERAP writes Tinubu, requesting spending information on the N400 billion in fuel subsidy savings

In the four weeks since the implementation of the policy on the withdrawal of payment of the subsidy on gasoline, the Federal Government is said to have saved N400bn.

President Bola Ahmed Tinubu has been urged by the Socio-Economic Rights and Accountability Project (SERAP) to use his influence and position to “urgently publish details of spending of about N400bn so far saved as a result of the removal of subsidy on Premium Motor Spirit (PMS), popularly known as petrol.”

The SERAP urged him to “provide details of the plans on how subsequent savings from the removal of subsidy on petrol, including specific projects on which the funds would be spent, and the mechanisms that have been put in place to ensure that any such savings are not embezzled, misappropriated, or diverted into private pockets.”

In the four weeks since the implementation of the policy on the withdrawal of payment of the subsidy on gasoline, the Federal Government is said to have saved N400bn.

The organization stated in a letter dated July 1, 2023 and signed by Kolawole Oluwadare, deputy director of SERAP, that “Your government has a legal responsibility to ensure that the savings from the removal of subsidy on petrol are spent solely for the benefit of the 137 million poor Nigerians who are bearing the brunt of the removal.”

According to SERAP, “Prevention of corruption in the spending of savings from the removal of subsidy on petrol and preventing and addressing the challenges caused by the removal are serious and legitimate public interests.”

Nigerians have a right to know how their savings are used, claims SERAP. A reduction in the likelihood of corruption in the use of the cash would result from publishing the specifics of how the savings were spent.

Among other things, the letter stated: “SERAP is concerned that the savings from subsidy removal may be embezzled, misappropriated, or diverted into private pockets.”

“Opacity in the spending of the savings from subsidy removal would have negative impacts on the fundamental interests of citizens and the public interest.”

“We appreciate it if the suggested actions are carried out within 7 days of the letter’s receipt and/or publication. If by then we have not heard from you, SERAP will consider taking the necessary legal action to compel your government to abide by our request in the interest of the public.

“The removal of the subsidy on gasoline will continue to undermine the rights of Nigerians and increase their vulnerability to poverty and social deprivation unless the government is transparent and accountable to Nigerians in how it spends the savings.”

Transparency would prevent money saved from subsidy elimination from going into private pockets and boost public trust and confidence that these savings would be put to good use for Nigerians.

The National Social Safety Net Programme (NASSP)’s implementation and financial expenditures have mostly been kept under wraps.

“Publishing the details of the N400bn spending and other savings from subsidy removal would also ensure that persons with public responsibilities are answerable to the people for the performance of their duties, including the management of the funds.”

“Transparency and accountability in the spending details of the N400bn 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.”

Additionally, it will help to prevent the morally odious outcome of double jeopardy on Nigerians who are impoverished and socially and economically disadvantaged.

Fundamental human rights that your government is obligated to protect would be directly threatened by the lack of transparency and accountability in the use of savings from the withdrawal of gasoline subsidies and the associated human costs.

“Your government has the legal responsibility to address the effects of subsidy removal on the human rights of 137 million poor Nigerians, as well as to prevent and address some of the direst consequences that the removal may reap on human rights, especially given the disproportionate impact on these Nigerians,” the statement reads.

“SERAP also urges you to immediately direct the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) to supervise the expenditure of all savings from subsidy removal.”

The withdrawal of the gasoline subsidy “continues to adversely and disproportionately affect poor Nigerians, undermining their right to an adequate standard of living,” according to SERAP.

“Your government owes obliged to its citizens to defend them against the harm that the elimination of gasoline subsidies poses to human rights. Additionally, your government is required by law to deal with the fallout from the termination of subsidies.

“SERAP is deeply concerned that the public’s trust and confidence in governments at all levels have been undermined by years of allegations of corruption and mismanagement in the use of public funds, as well as the enduring impunity of perpetrators.”

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, Article 9 of the African Charter on Human and Peoples’ Rights, and Article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including the details of how the N400bn and other savings from the removal of the subsidy on petrol would be spent.”

“By a combined reading of the provisions of the Nigerian Constitution of 1999 [as amended], the Freedom of Information Act of 2011, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on your government to widely publish the details of how the N400bn and other savings from the removal of subsidy on petrol are spent.”

The idea that people should have access to information about their government’s activities is supported by the Nigerian Constitution, Freedom of Information Act, and the nation’s commitments under international human rights and anti-corruption treaties.

“Your administration has a clear obligation under Section 13 of the Nigerian Constitution to adhere to, follow, and implement Chapter 2’s requirements. Your government is required under Section 15(5) to “abolish all corrupt practices and abuse of power” throughout the nation.

Your government is tasked with’securing the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity,’ according to Section 16(1) of the Constitution.

“The material resources of the nation are harnessed and distributed as best as possible to serve the common good,” states Section 16(2).

Similarly, your government is legally required by articles 5 and 9 of the UN Convention against Corruption to ensure proper management of public affairs and public money and to advance sound and transparent administration of public affairs.