Governors Reject Blame Over Mismanagement of Fuel Subsidy Windfall

By Reporter

ABUJA — The Nigeria Governors’ Forum (NGF) has rejected allegations that state governments failed to properly account for the additional revenues accruing to the states following the removal of petrol subsidy.

The governors said they would not accept responsibility for claims that sub-national governments had mismanaged or failed to account for the funds received after the Federal Government ended petrol subsidy in 2023.

Chairman of the NGF and Kwara State Governor, AbdulRahman AbdulRazaq, who spoke through Bayelsa State Governor, Douye Diri, stated this after the Forum’s meeting in Abuja.

Asked whether the governors would accept blame over allegations of poor accountability in the management of subsidy-removal proceeds, Diri dismissed the suggestion.

“That cannot be true. That cannot be true. But we’ll leave that debate for another day,” he said.

The controversy comes amid growing concerns over the huge increase in revenues available to the three tiers of government since the removal of fuel subsidy and whether the additional funds have translated into improved living conditions for Nigerians.

Data cited in previous reports showed that Federation Account allocations rose substantially after the subsidy removal, with N28.78 trillion shared among the three tiers of government in 2024, compared with N16.28 trillion in 2023.

Despite the increased revenues, Nigerians continue to face high transportation costs, food prices and other economic pressures.

The governors, however, said they were backing efforts to reduce transportation costs through the National Affordable CNG Transit Programme (NACTP), which is designed to encourage the use of compressed natural gas-powered vehicles.

Diri said the governors would work with the private sector to increase the number of CNG vehicles, stressing that gas was cheaper than petrol and could therefore help reduce transportation costs.

He said lower transport fares could have a multiplier effect on the wider economy, particularly for ordinary Nigerians.

“The impact is expected to be on our people, the common man,” Diri said.

The NGF also expressed support for state participation in initiatives aimed at promoting investment, exports, tourism and opportunities for small and medium-sized businesses.

The Forum’s position is likely to renew the debate over the management of the additional revenues generated since the removal of petrol subsidy, particularly demands for greater transparency on how the funds have been spent by state governments.

It wwill be recalled that President Bola Ahmed Tinubu had called on nigeriany to hold their state governors accountable for the resources that is accruing from the removal petroleum subsidy. In a recent case, Tinubu told governors to stop erecting overhead bridges that leads nowhere, but concentrate on the welfare of their citizens.